Virginia Unemployment Rate Drops As Vaccinations Hit Benchmark

VIRGINIA — Virginia’s unemployment rate dropped to 4.5 percent in May, which is 4.0 percentage points below the rate from a year ago, when the COVID-19 pandemic was beginning to take a heavy toll on workers in the state.

The labor force increased by 4,042 to 4,229,852 from April to May, according to Virginia Employment Commission data.

“More people are working in Virginia and our recovery is outpacing the rest of the country,” Virginia Gov. Ralph Northam said in a statement Wednesday. “This week, we reached the 70 percent vaccination benchmark, and we did it two weeks ahead of the nationwide July 4 target.”

The private sector recorded a year-over-year gain of 256,900 jobs in May, while employment in the public sector lost 1,600 jobs.

“With over 4.2 million Virginians fully vaccinated, we are reaching what looks like the final stages of this pandemic,” Virginia Chief Workforce Development Advisor Megan Healy said in a statement. “Our Administration is committed to helping Virginians return to work and make sure that they have the skills and support they need to thrive in the post-pandemic job market.”

In May, the largest year-over-year job increase in Virginia occurred in leisure and hospitality, up 104,600 jobs, or 45.7 percent. The next largest job increase occurred in trade, transportation, and utilities, up 59,800 jobs, or 10 percent. Education and health services experienced the third-largest increase of 31,500 jobs, or 6.3 percent.

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