Virginia’s new unemployment claims rose by about 30% last week, the Virginia Employment Commission reported Thursday, but remained about 8,000 lower than the number filed two weeks ago.
For the filing week ending Oct. 23, Virginians filed 2,570 initial claims, an increase of 603 claims from the week before. Continued claims totaled 44,840, a decrease of 13,581 from the previous week.
Compared to the same week last year, initial claims were about 79% lower than the 12,352 recorded then. Continued claims were 65% lower than the 127,621 from the comparable week last year.
People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.
The majority of claimants who filed for benefits last week reported being in these industries: health care and social assistance; retail; accommodation/food service; and administrative and waste services.
The VEC has been under scrutiny this year for backlogs of claims and, most recently, for delaying the launch of its updated claims system from Oct. 1 to November. VEC is shutting down the current system at 5 p.m. on Monday to implement the new system, a process that it expects to take several days, WDVM reported.
Nationwide, the advance figure for seasonally adjusted initial claims last week was 281,000, a decrease of 10,000 from the previous week’s revised level and the lowest level for initial claims since the 256,000 reported on March 14, 2020. There were 732,533 initial claims in the comparable week in 2020.
Denver-based apparel and footwear company VF Corp. will create 82 jobs with a $10.2 million expansion within Henry County, Gov. Ralph Northam announced Thursday.
The company will make upgrades within its 500,000-square-foot facility in Martinsville to increase distribution capacity and speed.
“VF Corp. has thrived in Henry County for nearly 20 years, and we are thrilled to see the company continue to invest in the commonwealth,” Northam said in a statement. “Virginia’s strong outdoor recreation economy supports the growth of companies like VF Corp. We look forward to the company’s continued success here in the commonwealth as our ecotourism industry grows.”
VF Corp. owns a family of outdoor, active and workwear brands including Vans, The North Face, Timberland and Dickies. The company, which has operated in Henry County since 2003, reported $9.2 billion in revenue for fiscal year 2021, sells products in more than 170 countries and produces 300 million units of apparel, footwear and accessories each year.
“We’ve proudly operated our distribution center in Martinsville for 18 years, and we know that continuing to invest in Martinsville is the right choice given its location and committed employees,” Cameron Bailey, VF Corp. executive vice president of global supply chain, said in a statement. “The planned investments in this facility, from enhanced technology to improved distribution equipment, as well as the 82 new full-time positions, will help deliver our products to our consumers in a more efficient and prompt manner.”
The Virginia Economic Development Partnership worked with the Martinsville-Henry County Economic Development Corp. and the Virginia Office of Outdoor Recreation to secure the project, for which Virginia competed with California and Pennsylvania. Northam approved a $225,000 grant from the Commonwealth’s Opportunity Fund to assist Henry County. The company is eligible to receive benefits from the Virginia Enterprise Zone Program, which is administered by the Virginia Department of Housing and Community Development. The VEDP’s Virginia Jobs Investment Program will provide funding to support employee recruitment and training activities.
The Steward School campus in Henrico County looks a bit different this year. With five mobile classrooms, a tent on the patio and masked faces, the school has noticeably adapted to the demands of teaching students amid a pandemic.
“In a lot of ways, we’ve gotten somewhat back to normal,” Head of School Dan Frank says, “but we do have some limitations about buses [and] we continue to need the learning cottages [mobile classrooms] because of class size limits and, of course, we’re masked, per the mandate.”
Like other private schools in Virginia, Steward incurred steep costs installing Plexiglas and other infrastructure to combat the spread of COVID-19 but says it has comfortably covered expenses due to recent enrollment increases.
School administrators attribute the enrollment increases to families seeking more stability for children who have had their education disrupted by remote and hybrid learning over the past 20 months.
Despite state law requiring public schools to offer in-person instruction to the fullest extent possible since March, private schools have been more likely to hold in-person classes since fall 2020, although state health officials have recorded coronavirus outbreaks at schools since then. In March, the Centers for Disease Control and Prevention reduced the recommended distance between students from six feet to three feet, which allowed private schools to increase enrollment.
Pandemic infrastructure expenses such as installing Plexiglass barriers are “the price of doing business,” says Ginny Colwell, head of school for St. Paul VI Catholic High School in Chantilly. Photo by Will Schermerhorn
As of early October, only children ages 12 and older were eligible to receive COVID vaccines, and the Virginia Department of Health recorded outbreaks in progress — meaning at least two positive cases — at schools in 20 counties at both private and public institutions since the start of the 2021-22 school year.
Nationally and in Virginia, applications to private schools have increased since the pandemic, and more students are on waitlists. In an August 2020 survey of National Association of Independent Schools (NAIS) members, 58% of respondents reported that a larger than average number of families from non-private schools were making admissions inquiries. By late March, another NAIS survey reported that admission numbers had stayed steady or improved from the previous year at more than two-thirds of responding private schools, and 57% of responding NAIS-member schools said they had received more applications compared with the same time during the previous year.
The Steward School, Morrison School in Bristol, Fredericksburg Christian School (FCS) and St. Paul VI Catholic High School in Chantilly have waitlists for some — if not most — grades.
While St. Paul VI Head of School Ginny Colwell says her school’s waitlists are the result of intentional growth control rather than space constraints, other schools attribute their waitlists to their schools’ good reputations and families seeking alternatives to remote learning.
Steward School had a roughly 20% to 30% increase in student applications, and it has 650 students enrolled this fall, Frank says. Last year, distancing requirements meant that FCS had to turn down around 50 applicants, a loss of roughly $500,000 in tuition. This year, it had 991 students enrolled as of early October, up from 859 students last year, when social distancing measures were in place. Morrison School has 62 students enrolled, nine more than the previous year, but the school has provided about $9,000 more than the $120,000 budgeted for tuition assistance.
At the Catholic Diocese of Arlington‘s schools, enrollment this school year increased more than 6% from the prior year, bringing total enrollment to almost 17,000 students.
St. Paul VI jumped from 964 to 1,090.
Private schools have largely borne the costs of distancing and safety measures, although some, like Morrison School, have received help from their communities. Morrison received air purifiers from Aerus, which has a manufacturing facility in Bristol, and masks from local companies Westfall Orthodontics and Universal Cos. In April, Gov. Ralph Northam invited state private schools to apply for $46.6 million in federal funding to assist with pandemic- related operating costs.
Extra costs
According to NAIS, 65% of responding members in October 2020 had purchased tents, trailers or added building space to allow for social distancing. Nearly all reported buying masks or face shields, 84% invested in plastic or Plexiglas dividers, and 64% said they had upgraded their heating, ventilation and air conditioning systems or purchased new systems.
The Steward School upgraded its HVAC system, bought more sanitizing supplies and provided students and employees with personal protective equipment. The school also hired more nurses and counselors, invested in five mobile classrooms and purchased technology, including livestreaming equipment. Regular, randomized COVID testing among students and staff members has also proved expensive.
Fredericksburg Christian School Superintendent Rick Yost says that, not counting extra janitorial costs, his school spent an average of $2,428 a month on sanitizing treatments and $2,722 on extra surface cleaning for high-touch areas like door knobs. He estimates that his school spent around $30,000 to $40,000 just installing Plexiglas dividers in the elementary school. St. Paul VI’s Colwell estimates her school spent roughly $30,000 on Plexiglas barriers between students who sit facing forward at instruction tables, two to a table. Gallons of hand sanitizer have been deployed, and the school uses air purifiers throughout its buildings.
“We’re not really surprised by the costs that we have,” Colwell says. “The CDC has been very good with what they feel [is needed] and what they recommend, so we have spent money [to comply with the CDC’s COVID recommendations]. … It’s the price of doing business, really.” St. Paul VI’s donors helped offset expenses, she says.
Morrison School in Bristol took revenue hits from pandemic-related enrollment restrictions and increased tuition needs, says Head of School Jami Verderosa. Photo by Earl Niekirk
Also, a well-timed move from Fairfax city to Chantilly in summer 2020, in which St. Paul VI’s campus grew from 16 to 68 acres, provided for more outdoor space, including a large patio. It’s equipped with restaurant-quality outdoor heaters, and students can eat at picnic tables mask-free when the weather cooperates.
Morrison School pieced together federal funding and private donations to cover its expenses. It was also able to receive Paycheck Protection Program loans.
Although the school, which has small class sizes and is dedicated to children with different learning needs, wasn’t able to hold its annual golf tournament fundraiser last year due to the pandemic, most of its usual participants still donated, says Head of School Jami Verderosa, and the school will hold this year’s tournament in April.
“It’s because of the great staff and the supporters and donors that we have that we have been able to continue to grow,” she says.
Because of a partnership with a public school, Morrison received $26,283 in federal CARES Act funding money, which it used to hire additional personnel to clean daily. This year, two high school students volunteer after school on a rotating basis to assist the school’s custodian with cleaning. The school also added and replaced some Chromebooks in case the school had to go virtual again.
Because the school was built in 2015, the administration hasn’t upgraded its HVAC, but it did install Plexiglas dividers.
The biggest pandemic-related hits to the school’s revenue came from limited enrollment and increased tuition assistance needs, Verderosa says. Morrison was not able to hold a summer program in 2020. “That’s a lot of income that comes in …and that’s a big recruitment [tool] for us for the fall, so that was a big setback because then we didn’t have families that could try our program [before] the school year,” she says. Also, the school did not offer a pre-K and kindergarten program in the ’20-’21 school year because additional classrooms were needed to physically distance students in other grades, although those programs returned this fall.
Similarly, The Steward School had to increase the number of buses it uses for athletic teams to accommodate distancing measures, meaning it sometimes has to charter buses to use in addition to its own, or to charter double the number of buses for longer trips.
And like public schools, independent schools are also encountering labor problems. Fredericksburg Christian School has been having trouble finding bus drivers. Along with transporting athletic teams to games, the school runs five bus routes to outlying counties daily.
Hiring difficulties
Labor shortages in private schools vary across the state. Despite struggling to find bus drivers, FCS was able to hire an admissions director and more teachers. The school raised its pay rate in order to attract extended care workers, and principals and teachers filled in during the interim.
School administrators say their schools have encountered some teacher turnover, but they attribute it to teachers leaving the industry due to increased stress and workloads, rather than an inability to compete for talent with public schools, which can offer higher pay but also have larger classes. “We asked a lot of our faculty last year,” Colwell says, “and they did not disappoint. I’m just impressed with the resilience and the positive outlook that many of our faculty [had] last year.”
Morrison School has been searching for a high school teacher with a math or special education certification since mid-August. For now, other staff members cover the class and duties.
St. Paul VI Catholic High School hired 18 teachers this year, some because teachers retired and some due to enrollment growth, as well as eight staff members, ranging from security and custodial employees to administrative assistants and teachers’ aides.
In recent years, independent schools in Virginia fared slightly better than independent schools nationally, according to National Association of Independent Schools data. In Virginia, the total number of students enrolled in independent schools dipped 0.46% between 2019 and 2021, but 52.5% of schools reported enrollment growth in that period. Nationally, independent schools saw a 1.7% decrease in enrollment for the 2020-2021 school year, but 44.9% reported increased enrollment.
Despite the unexpected expenses brought by the pandemic, most private schools have seen high enough increases in enrollment numbers to offset the new needs, or in some cases, even see a net gain. “I spent 20 years in the business world before I came to do this, and our saying was, ‘Volume cures all ills,’” Yost says. “It’s true also in private education: Enrollment takes care of those things.”
After a year of learning how to operate in a pandemic, schools are glad to be fully in-person. Steward’s campus is full of “happy noise,” Frank says, with students and teachers chatting and engaging each other in-person.
“We are still offering full athletics, full fine arts,” he says. “We were able to bring back our lunch program this year. … We have not scaled back on faculty and staff. We have not cut any classes or other types of programming. We are robust as we were pre-pandemic.”
Almost 70% of CEOs expect sales to increase over the next six months, and about 60% expect employment to increase, according to a third quarter survey conducted by the University of Richmond‘s Robins School of Business and the Virginia Council of CEOs (VACEOs).
Compared to answers from the CEOEconomic Outlook Survey conducted at the end of the second quarter, more CEOs expected sales, capital spending and employment to increase in the next six months.
“These CEOs are expressing a pre-pandemic level of optimism,” VACEOs Executive Director Scot McRoberts said in a statement. “That is in spite of the significant headwinds of workforce challenges and supply chain disruptions. That’s good news for all of us.”
Sixty-eight percent of CEOs responded that they expected sales to increase over the next six months, with most of those (55%) saying they expected sales to be “higher” and 13% choosing “significantly higher.” Twenty-three percent expect no change in sales.
About 47% expect capital spending to increase over the next half-year, up from 36% last quarter, but 45% expect it to remain flat. More than 8% expect a decrease in capital spending.
About 60% of respondents indicated that they expected employment to increase over the next six months, but 38% expect it to remain flat. Only 2% anticipate employment falling.
Forty-five percent of CEOs polled said they would not require a return to in-person work yet, while 24% said they would, and 31% weren’t sure.
The survey also asked CEOs what percentage of their workforce would be working remotely relative to pre-COVID times. Almost half (47%) said that there would not be a change in the percentage working remotely. Thirty-two percent said a higher percentage of employees would be working remotely compared to the pre-COVID distribution, and 21% said a lower percentage would be working remotely.
The survey was administered from Oct. 5 to Oct. 11, and 53 CEOs responded. Services, retail and construction represent the majority of respondents. The average company whose CEO responded had about $16 million in revenue for the most recent 12-month period and an average of 80 employees.
The Robins School adapted the survey from Business Roundtable, a Washington, D.C.-based lobbyist association of CEOs of U.S. companies, and has administered it since 2010. Rich Boulger, associate dean at the Robins School, administers the survey and collects the responses.
Fahey, who works remotely from Seattle, has been Leading Harvest’s executive director since its launch 18 months ago. He has enrolled more than 1.3 million acres across 29 states in the organization’s Farmland Management Standard for sustainable agriculture, and he is overseeing a pilot program in Australia.
“Kenny has led us through our early months with a strong and sure hand, and the full board is thrilled that he will continue to drive Leading Harvest’s efforts as we build on our successes in the U.S., engage with the supply chain and expand our reach in international markets,” Oliver Williams IV, Leading Harvest chair and global head of agricultural investments for Hancock Natural Resource Group, said in a statement.
Fahey came to Leading Harvest on loan from The Conservation Fund, where he had served as its working lands principal. The Conservation Fund convened a group of farmers, investors, NGOs and farm managers to create a universal third-party certification program for farmland management, and Larry Selzer, the fund’s president and CEO, appointed him to staff the group. The group became Leading Harvest.
“This is a bittersweet moment for The Conservation Fund, where Kenny has been a highly respected and valued colleague,” Selzer, who is also vice chair of Leading Harvest board, said in a statement. “But we know that Leading Harvest — and the future of agriculture — will be well-served by this terrific, committed leader in our conservation and sustainability movement.”
Fahey holds an undergraduate degree from Bowdoin College and an MBA and master’s degree from the University of Michigan.
Started in 2020, Leading Harvest is a nonprofit organization committed to increasing the adoption of sustainability practices in agriculture. The organization provides assurance programs composed of standards, audit procedures, training and education and reporting and claim offerings.
Two neighborhood retail centers in Petersburg sold for $10.25 million on Oct. 15.
The two properties total 192,510 square feet and occupy 24.9 acres. Located at 3330 S. Crater Road, South Crater Square is 82.7% leased and anchored by Rose’s, with Walmart Supercenter as a shadow anchor. Pinehill Plaza, located across the street at 3333 S. Crater Road, is 29.1% leased.
Pikesville, Maryland-based America’s Realty LLC bought the portfolio from South Crater Square Associates LLC. Catharine Spangler with Cushman & Wakefield | Thalhimer‘s Capital Markets Group represented the seller, with assistance from Alicia Brown, who handles leasing at the properties.
Marc Tropp, a senior managing director with Bethesda, Maryland-based commercial real estate brokerage Eastern Union Funding, arranged a loan of more than $8 million for Carl Verstandig, president and CEO of America’s Realty. The loan provided about $7.69 million for the purchase — a 75% loan-to-cost ratio — and the remaining $500,000 the bank is holding for future improvements for tenants.
In September 2020, the jobless rate was at 6.6%, 2.8 points higher than last month. The labor force decreased by 3,859 to 4.2 million, but the number of unemployed residents decreased by 8,606 from August, the Virginia Employment Commission reported Friday. The state recorded over-the-year job gains of 1.8%. Virginia’s seasonally adjusted unemployment rate continues to be below the national rate, which was 4.8% last month.
“September marks the 16th consecutive month Virginia’s unemployment rate has dropped,” Northam said in a statement. “People are working, businesses are hiring, and that’s all good news. This consistent progress shows the strength of Virginia’s economy, and we need to keep this momentum going.”
The number of employed Virginians increased by 4,747 to 4.08 million in September. The private sector saw an increase of 7,500 jobs to 3.2 million jobs total, while public sector jobs decreased by 4,800 jobs to 713,000, according to the VEC.
Employment rose in four of 11 major industry sectors, declined in six and was unchanged in one, the VEC reported. Mining was the only sector to see no change in employment.
The largest job gain during September occurred in professional and business serviceswhich gained 9,900 jobs for a total of 781,000 jobs. The second largest increase was in education and health services, with an increase of 2,900 jobs to total 534,600. The other industries with increases were manufacturing and information.
The largest job loss during September occurred in government, with a decrease of 4,800 jobs to 713,000, caused by the loss of 7,500 jobs in local government. State government added 2,100 jobs, and federal, 600 jobs The second largest decrease occurred in miscellaneous services, which fell by 3,700 jobs to 181,500. Other decreases included leisure and hospitality services; trade, transportation and utilities; finance; and construction.
The VEC reported that five of Virginia’s 10 metropolitan areas saw nonfarm job gains during September, with the Virginia Beach-Norfolk-Newport News area gaining 3,300 jobs and Northern Virginia taking second with 1,700 jobs. Charlottesville had the largest decrease, losing 1,300 jobs during the month.
After a surge of 300% in initial unemployment claims in mid-September, the state saw numbers return to relatively normal levels for three weeks. Last filing week, VEC recorded fewer than 2,000 initial claims.
Charlottesville-based Castle Development Partners owns the multifamily project, which was referred to as Watkins Centre in the $30.3 million first phase, for which Breeden Construction LLC was the general contractor. In the second phase, Breeden Construction will add 252 apartment units to the existing 200 apartments for a total of four four-story buildings. The apartments will be a mix of one-, two- and three-bedroom units. Construction is set to begin in November and be completed in about 18 months.
“We are pleased to serve as general contractor again for Castle Development Partners and look forward to expanding such a beautiful apartment community,” Breeden Construction President Brian Revere said in a statement.
Nauticus began construction on its $2.6 million cruise ship gangway in Norfolk this week, it announced Wednesday.
The new boarding system will accommodate larger cruise ships, like the Carnival Magic, which is set to sail from Norfolk in 2022. Nauticus expects to have more than 180,000 cruise ship passengers in 2022.
Swedish company Seawing PBB AB designed the gangway, which arrived Oct. 6 aboard the Sluisgracht. Construction is set to be completed in mid-November.
“Next year will be a game changer for our cruise ship program,” Nauticus Executive Director Stephen E. Kirkland said in a statement. “Not only will we begin our five-year partnership with Carnival, we’ll also welcome 25 ships from Norwegian Cruise Line.”
The Peter G. Decker Jr. Half Moone Center on the Nauticus campus is Virginia’s only cruise terminal. Nauticus is a maritime discovery center located on the waterfront in downtown Norfolk.
For the filing week ending Oct. 16, Virginians filed 1,967 initial claims, a decrease of 7,380 claims from the week before. Continued claims totaled 58,421, an increase of 11,954 claims from the previous week.
Compared to the same week last year, initial claims were about 83% lower than the 11,365 recorded then. Continued claims were 55% lower than the 129,300 claims from the comparable week last year.
People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.
The majority of the claimants who filed for benefits last week reported being in these industries: health care and social assistance; retail; accommodations/food service; and administrative and waste services.
The VEC has been under scrutiny this year for backlogs of claims and most recently, for delaying the launch of its updated claims system from Oct. 1 to November.
Nationwide, the advance figure for seasonally adjusted initial claims last week was 290,000, a decrease of 6,000 from the previous week’s revised level. There were 759,081 initial claims in the comparable week in 2020.
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