RICHMOND, VA – Governor Glenn Youngkin yesterday announced the labor force participation rate increased by 0.3 percentage points to 66.5 percent in May, the highest rate since July 2013. According to BLS Local Area Unemployment Statistics (“LAUS,” or “the household survey”), the labor force in Virginia increased by 23,536 to 4,574,349. In addition, over 29,000 more Virginians were employed in May than April, with further decline in the unemployment rate to 2.9 percent.
“The labor force participation rate in the Commonwealth continues to grow as more Virginians get off the sidelines and find jobs,” said Governor Glenn Youngkin. “While we are encouraged by May’s strong employment numbers, we maintain our focus on creating a more competitive environment for business growth in the Commonwealth.”
With the continued increase of Virginians moving back into the workforce, Virginia’s seasonally adjusted unemployment rate of 2.9 percent was a slight decrease from April and remained below the national rate, which increased to 3.7 percent in May.
According to LAUS, the number of employed residents increased by 29,462 to 4,440,015 in May. Throughout the month, the number of unemployed residents decreased by 5,926 to 134,334.
“Virginia’s unemployment rate fell to 2.9% in May and remains below the national rate,” said Secretary of Labor Bryan Slater. “However, there remains uncertainty in the economy, which is why we are so focused on workforce development and individual advancement.”
“In May the labor force, labor force participation rate, and the number of employed Virginians all increased while the number of unemployed Virginians and the unemployment rate both decreased,” said Secretary of Commerce Caren Merrick. “We are pleased to see this continued growth and the impact of our economic development efforts.”
BLS publishes an additional employment figure from its Current Employment Statistics Survey (“CES” or “establishment survey”). Virginia’s CES employment rose by 6,900 to 4,146,900 in May and has increased by 91,500 to 4,146,900 since May 2022.
The CES survey uses payroll records of establishment employers and is designed to provide a count of jobs under which the employer pays unemployment insurance. The LAUS survey is based on household interviews conducted each month for the Bureau of Labor Statistics and provides comprehensive data on the labor force, including those who are employed and unemployed. Establishment survey data reflects changes for updated seasonal adjustment factors, and industry classification conversions (NAICS), as part of the annual benchmarking process.
The household survey only distinguishes between whether a person is employed or unemployed, whereas CES counts each employee that is on an employer’s payroll. CES excludes business owners, self-employed persons, unpaid volunteers and private household workers, and those on unpaid leave or not working because of a labor dispute.
Seasonally adjusted total nonfarm employment data is produced for eleven industry sectors. In May, six experienced over-the-month job gains, and five experienced a decline. The largest job gain occurred in Professional and Business Services (+3,900) to 815,200. The second largest job gain occurred in Construction (+2,600) to 215,100. The third largest job gain occurred in Education and Health Services (+1,700) to 577,700. The other gains were in Information (+800) to 72,000, Trade, Transportation, and Utilities (+400) to 665,900, and Government (+300) to 728,900. The largest job loss occurred in Other Services (-1,700) to 193,900. The second largest job loss occurred in Manufacturing (-700) to 245,300. The third largest job loss occurred in Financial Activities (-200) to 216,200. The other losses were in Leisure and Hospitality (-100) to 409,700, and Mining and Logging (-100) to 7,000.
From May 2022 to May 2023, the VEC estimates that total nonfarm employment in Virginia increased by 91,500 to 4,146,900, private sector employment increased by 76,300 to 3,418,000, and employment in the public sector increased by 15,200 to 728,900 jobs.
For the eleven industry sectors in Virginia over the year, ten experienced over-the-year job gains, and one experienced a decline. The largest job gain occurred in Education and Health Services (+24,900) to 577,700. The second largest job gain occurred in Leisure and Hospitality (+23,300) to 409,700. The third largest job gain occurred in Government (+15,200) to 728,900. The other gains were in Professional and Business Services (+12,700) to 815,200, Construction (+7,500) to 215,100, Other Services (+3,900) to 193,900, Information (+2,600) to 72,000, Trade, Transportation, and Utilities (+700) to 665,900, Financial Activities (+400) to 216,200, and Manufacturing (+400) to 245,300. The largest job loss occurred in Mining and Logging (-100) to 7,000.
