Virginia's unemployment rate drops to 2.6 percent

Virginia’s seasonally adjusted unemployment rate decreased 0.1 percentage point in October to 2.6 percent – slightly below the rate from a year ago – Gov. Ralph Northam announced Tuesday.

In October, the labor force expanded for the 16th consecutive month (by 13,547, or 0.3 percent) to set a new record high of 4.42 million. The number of unemployed residents decreased by 2,368. Household employment increased by nearly 16,000 to set a new high of 4.3 million.

Virginia’s seasonally adjusted unemployment rate continues to be below the national rate, which increased to 3.6 percent.

“Virginia’s economy is headed in the right direction,” said Northam, traveling on an economic development mission in the Middle East. “The competition for talent is on, because low unemployment gives workers more options about where to work. Next month, we will put forward a budget that continues investing in workforce development to ensure long-term, shared economic growth in our Commonwealth. We want Virginia to be the best state to work in and the best place to run a business.”

Virginia has the lowest seasonally adjusted unemployment rate among the Southeast states along with South Carolina. Virginia has the second best rate among the states east of the Mississippi along with New Hampshire and South Carolina. Virginia is ranked fourth in the nation for the seasonally adjusted unemployment rate along with Colorado, Iowa, New Hampshire, and South Carolina.

Over-the-year employment growth in Virginia has been positive for 67 consecutive months. For October, Virginia’s over-the-year growth of 0.7 percent was lower than the national rate. Nationally, over-the-year growth slowed in October to 1.4 percent from 1.5 percent in September and August.

“Virginia is home to many of the world’s most skilled workers and cutting-edge firms,” said Chief Workforce Development Advisor Megan Healy. “With competition for top-tier talent heating up around the globe, employers are increasingly drawn to the lucrative business opportunities created by our world-class workforce.”