Virginia was the only state to see unemployment rise in June

RICHMOND, Va. (WRIC) — With Virginia’s unemployment rate being the highest it’s been in four years, data from the U.S. Bureau of Labor Statistics says that it’s the only state to see an unemployment rate rise in June.

According to a report from the U.S. Bureau of Labor Statistics released on Friday, July 18, the unemployment rate in Virginia rose again in June, to 3.5%, saying, “Virginia had the only rate increase,” while Illinois decreased by 0.2% and Maine by 0.1%.

8News previously reported that Virginia’s unemployment rate has increased steadily to 3.4% in May since January, per the U.S. Bureau of Labor Statistics.

Virginia’s rate is 0.6% lower than the national rate of 4.1%.

The report shared that the other remaining 47 states and Washington, D.C., had unemployment rates that were not “notably different” from May.

On Friday, Gov. Glenn Youngkin released a statement on the recent job surveys and data shared by the U.S. Bureau of Labor Statistics.

“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. 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. Virginia’s financial and economic strength continue to provide the fuel for new opportunities and growth.”  
Gov. Glenn Youngkin

In our previous coverage, John Provo, Executive Director of Virginia Tech’s Center for Economic and Community Engagement, said a variety of factors, including delayed buyouts, legal challenges and more, make it difficult to determine whether federal layoffs have affected Virginia’s unemployment rate.

The decisions at the federal level, which include the thousands of fired federal workers and contractors in Virginia, could lead to a notable increase later in the year.

According to data from the Economic Information and Analytics Division of Virginia Works, Virginia’s nonagricultural employment decreased by 8,400 to 4,268,300. meanwhile, in May, preliminary estimates show it increased by 600 to 4,276,700.

The department added that the three largest job losses were the following:

• Professional business services: A 3,500 drop to 806,900.
• Education and health services: A 2,200 drop to 636,700.
• Leisure and hospitality: A 1,500 drop to 241,300.

Youngkin remains fervent in his commitment to Virginia’s financial and economic growth, but he’s not alone.

“Here in the Commonwealth, we are laser-focused on engaging workers and removing barriers to employment and career advancement,” said Secretary of Labor Bryan Slater. “We’re expanding access to training, apprenticeships, and supportive services to help more Virginians reenter and remain in the workforce.”  

“Short-term shifts in employment data don’t change our long-term mission,” said Secretary of Commerce and Trade Juan Pablo Segura. “We remain committed to fostering conditions where businesses can start, scale, and hire. By promoting innovation, cutting red tape, and investing in Virginia’s diverse regions, we’re building a stronger, more resilient economy for all.” 

Despite significant losses in the Arlington-Alexandria area, which dropped 4,700, and Virginia Beach-Chesapeake-Norfolk, which dropped 2,600, the City of Richmond saw a notable, large job gain of 12,500, per data from the Economic Information and Analytics Division of Virginia Works.