Virginia unemployment rate rises slightly in April to 3.3%

Virginia’s unemployment rates continue to see an incremental rise, according to April data from the state’s Department of Workforce Development and Advancement, also known as Virginia Works.

In April, the state’s unemployment rate rose a tenth of a percentage point to 3.3% compared to 3.2% in March and half a percentage point from April 2024’s unemployment rate of 2.8%. The state’s joblessness rate is below the national rate of 4.2%, Virginia Works reported Wednesday.

However, Virginia could see the unemployment rate climb in May, as weekly reports have shown major increases in the state’s unemployment insurance claims this month. For the week ending May 10, 3,992 people filed initial claims, a 46.8% increase from the previous week, Virginia Works reported May 15.

For the week ending May 17, initial unemployment insurance claims fell by 32% to 2,715 new claims, but continued weeks claims were 8.9% higher than the previous week, with 19,765 people filing continued claims for unemployment insurance, compared to 18,144 in the week ending May 10. Unemployment claims were considerably higher than the comparable week in 2024, with 22.1% more people filing new claims this year and 24.7% more filing continued claims.

According to Virginia Works, which reports unemployment claims weekly, workers in professional, scientific and technical services have been hit the hardest, with 387 people filing new claims and 4,075 filing continued claims last week. Accommodation and food services, administrative and support and waste management, health care, retail and manufacturing also suffered job losses.

In its quarterly economic forecast issued May 13, the University of Virginia’s Weldon Cooper Center for Public Service estimated that the state could lose 32,000 jobs this year and that the monthly unemployment rate could rise to an average of 3.9% in 2025 and up to 4.7% in early 2026.

Household survey data collected in April shows the labor force decreased by 7,540 to 4,579,104 as the number of unemployed residents increased by 6,305 to 151,942. The state agency reports that Virginia’s employed residents decreased by 13,845 to 4,427,162.

The Virginia labor force participation rate — the proportion of the civilian population ages 16 and older employed or actively looking for work — dropped from 65.5% in March to 65.4% in April.

The largest job losses in April occurred in manufacturing, which dropped by 1,300 to 242,900, and professional and business services, which dropped 1,300 to 807,000. The third largest job losses occurred in education and health services, which declined by 1,100 to 630,400. The other losses were the federal government (down 900 to 191,600); trade, transportation and utilities (down 500 to 679,800) and mining and logging (down 100 to 7,100.)

Last week, Old Dominion University Economist Bob McNab said that many job losses were due to federal layoffs and tariffs imposed by President Donald Trump’s administration. Also, in May Georgia-Pacific informed its employees in Emporia that it was closing its plant there, leading to 554 layoffs.

In one bright spot, Virginia’s nonagricultural employment in April increased by 500 from March to 4,272,700. Virginia Works reports that March’s preliminary estimate of employment, after revision, increased by 800 to 4,272,200. April’s nonagricultural employment numbers are a 47,900 increase from the previous year’s 4,224,800.

“In addition to the 500 nonfarm payroll jobs added in April, March’s positive revision includes another 800 jobs,” Gov. Glenn Youngkin said in a May 21 news release. “This report underscores the resiliency of Virginia’s labor market and the need for us to continue our pro-growth policies that have seen record investment by companies wanting to be part of Virginia’s future.”

April also saw private sector employment increase by 1,100 from March to 3,510,600. The biggest job gains in April from March were in construction (up 4,300 to 228,400), leisure and hospitality (up 700 to 418,700) and information (up 400 to 70,600).

Secretary of Labor Bryan Slater said in the governor’s release that despite a dip in overall labor force numbers, “businesses across Virginia are still adding jobs.”

“We’re working closely with industries to support expansion and investment that will drive long-term job creation,” Slater said. “Virginia continues to attract and retain high-quality employers. The growth in nonfarm payroll employment is a sign that companies remain confident in our workforce and economy.”