Region's jobless rate climbs to 7.2 percent in February

By Tom Shean
The Virginian-Pilot
© April 2, 2009

Propelled by job losses in retailing, manufacturing and construction, Hampton Roads' unemployment rate jumped to 7.2 percent in February from 6.7 percent in January, the Virginia Employment Commission reported Wednesday.

The number of area residents out of work grew in February by 4,080 to 59,060, according to the employment commission.

The last time joblessness in Hampton Roads hit 7.2 percent probably was during 1982-83, said William F. Mezger, chief economist for the VEC's economic information services division. Unemployment data for Virginia's metro areas before 1990 wasn't readily available, he said.

Among the nation's 49 largest metro areas, the Virginia Beach-Norfolk-Newport News region had the ninth-lowest rate, according to a Bureau of Labor Statistics ranking of metro areas by their February jobless rates. The New Orleans-Metairie-Kenner region had the lowest rate at 5.3 percent.

Some of Hampton Roads' job losses in February were offset by growth in the health care and education sectors, Mezger said. State and local governments in the region also added jobs, he said.

However, retail employment in Hampton Roads plunged by 1,600, or 1.8 percent, to 86,600, while the number of manufacturing jobs fell by 400 to 54,300. Construction employment slid by 300 to 42,100 in February.

Among Hampton Roads' localities, Williamsburg continued to have the highest monthly jobless rate, although its rate dipped to 19.3 percent from 19.4 percent in January. The city has been hurt by cutbacks in tourism and hospitality-related businesses.

One favorable development in the region was a falloff in new claims for jobless benefits, Mezger noted. The number dropped to 5,391, from 7,463 in January.

Statewide, the February jobless rate rose to 7 percent from 6.4 percent in January, the VEC said. Danville was the only region among Virginia's 10 metro areas to register a month-to-month decline in the jobless rate. Its rate dropped to 12.3 percent from 13.9 percent in January. The nation's unemployment rate was 8.9 percent in February, up from 8.5 percent one month earlier and 5.2 percent in February 2008.

Tom Shean, (757) 446-2379, tom.shean@pilotonline.com

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Initial claims down

Submitted by EvanJ on Wed, 04/01/2009 at 6:16 pm.

The initial claims are down from January to February so we may see improvement next report. The sample for this one was Feb 8-14, so this tells us what was happening a month and half ago.

Hampton Roads rate getting closer to National Rate

Submitted by NPD on Wed, 04/01/2009 at 12:53 pm.

The rate keeps jumping each month that goes by. The resturants are still busy though. For anyone who has lost their job, many blessings to you, and hope things get better for you soon!