Governor Glenn Youngkin Announces Unemployment Rate Decrease and Continued Year-Over-Year Job Gains

RICHMOND, VA - Governor Glenn Youngkin announced today that Virginia's unemployment rate declined to 3.5 percent in September, remaining 0.9 percentage points below the national rate, which rose to 4.4 percent. Over the past year, the Commonwealth has recorded a gain of 28,200 nonfarm jobs, and since January 2022, total nonfarm employment has increased by 273,800, reported by the Bureau of Labor Statistics (BLS).

August's original estimates were revised upward by 1,800 jobs to a total of 9,000. Preliminary seasonally adjusted nonfarm payroll data from BLS show a 5,000-job decrease in September, driven entirely by a model-based reduction in state government employment. Commonwealth administrative payroll records, however, indicate that actual state government employment increased in September, underscoring a divergence between the federal model and actual payroll data. A substantial future upward revision of thousands of jobs is expected.

"Virginia's job market continues to demonstrate sustained strength, with more than 270,000 jobs added since this administration began," said Governor Glenn Youngkin. "The reported decline in state government employment reflects a statistical adjustment, not a real reduction. Our own payroll data show job growth continuing across state government and throughout the Commonwealth. Employment is rising, investment is accelerating, and opportunities continue to expand for Virginians."

According to BLS Local Area Unemployment Statistics ("LAUS", or "the household survey") preliminary release, the labor force decreased by 7,418 to 4,540,292 as the number of unemployed residents decreased by 2,631 to 160,199. The Commonwealth's labor force participation rate decreased by 0.1 percentage points to 64.6 percent in September. The labor force participation rate measures the proportion of the civilian population age 16 and older that is employed or actively looking for work.

"This month's report shows encouraging signs: unemployment fell, and Virginia's long-term job growth remains solid. Over the year, tens of thousands of Virginians have moved into jobs, and we will keep building on that progress by supporting workers, strengthening our talent pipelines, and ensuring every employer can find the skilled labor they need," said Secretary of Labor Bryan Slater.

"Virginia's broader employment trends remain strong. Businesses in Virginia have created tens of thousands of jobs in the past year, over a quarter-million since this administration began, and we anticipate over 85,000 jobs will be created through recent investment announcements. We're continuing to attract new investment, expand existing industries, and position the Commonwealth for even stronger economic performance in the months ahead," said Secretary of Commerce and Trade Juan Pablo Segura.

The LAUS survey is based on household interviews conducted each month for the Bureau of Labor Statistics and provides comprehensive data on the labor force, including those who are employed and unemployed. Establishment survey data reflects changes for updated seasonal adjustment factors, and industry classification conversions (NAICS), as part of the annual benchmarking process.

The household survey only distinguishes between whether a person is employed or unemployed, whereas CES counts each employee that is on an employer's payroll. CES excludes business owners, self-employed persons, unpaid volunteers and private household workers, and those on unpaid leave or not working because of a labor dispute.

For more details, visit the Virginia Works website at https://virginiaworks.com/.