(The Center Square) – Virginia was the only state in the country to experience a statistically significant increase in unemployment in June, rising from 3.4% to 3.5%, according to the U.S. Bureau of Labor Statistics.
Gov. Glenn Youngkin said Friday that Virginia lost 8,400 jobs in June due to federal and contractor workforce reductions, calling it a temporary setback as the commonwealth experiences broader growth in non-federal sectors.
Virginia’s seasonally adjusted unemployment rate is still below the national average of 4.1%, according to the BLS’s monthly report released July 18.
“The announced federal and contractor workforce reductions resulted in the month’s decline in jobs of 8,400 while the full year saw growth of more than 35,000,” said Gov. Glenn Youngkin in a statement, “As I have said previously, we expect there will be federal job reductions and that the growth in non-federal jobs over the course of the year, nearly 200,000 open and unfilled positions and 80,000 jobs being created by the $120 billion in business investment Virginia has attracted, will provide opportunities for those who have experienced job dislocation.”
“Over the next few months, we do expect to see the push and pull on the jobs market as some areas of the federal government reduce employment and others grow, like the defense sector and the broader private sector,” Youngkin added. “Virginia’s financial and economic strength continue to provide the fuel for new opportunities and growth.”
According to the BLS household survey, Virginia’s labor force declined by more than 10,000 people in June. The number of unemployed residents rose to 160,116. State officials said the labor force participation rate dropped to 65%.
Secretary of Labor Bryan Slater said the state is focused on workforce reentry through apprenticeships, training and support services.
“We’re laser-focused on engaging workers and removing barriers to employment and career advancement,” Slater said.
Commerce Secretary Juan Pablo Segura emphasized that short-term changes in employment data do not shift the state’s long-term economic strategy.
“By promoting innovation, cutting red tape, and investing in Virginia’s diverse regions, we’re building a stronger, more resilient economy for all,” Segura said.
