Virginia's unemployment rate rose for the second straight month in August, underscoring an anemic job market as the uneven economy continued to affect many industry sectors.
The state's jobless rate stood at 6.3 percent in August, up from July's rate of 6.1 percent, the Virginia Employment Commission reported Friday. The rates are seasonally adjusted.
Payroll employment fell by more than 9,500 jobs with industry sectors including government, leisure, and business and professional services shedding workers.
Virginia reflected a national trend, as unemployment rates increased in 26 states in August, the U.S. Labor Department said. Rates fell in 12 states and were unchanged in 12.
Virginia's jobless rate increased in July and August, breaking a downward trend since unemployment hit a peak of 7.2 percent in the December 2009 to February 2010 time period, the commission reported.
"I don't think it's a surprise" that the rate was up in August, said Ann Lang, senior economist for the commission. "It is not a surprise, just because of the uncertainty surrounding the economy. There is not a lot of hiring because consumers are tentative, and there are some policy uncertainties."
On the positive side, Lang noted, the state's unemployment rate remained below the 6.8 percent rate of August 2010. Virginia's rate was the 10th lowest among states and well below the national rate, which was unchanged in August at 9.1 percent.
The economy still seems to be suffering the lingering effects of several shocks this year, including an increase in gasoline prices, supply-chain disruptions resulting from the earthquake in Japan, and the fight in Washington over the U.S. debt ceiling, said Christine Chmura of Chmura Economics & Analytics in Richmond.
Europe's debt crisis also continues to fuel uncertainty.
Chmura puts the likelihood of the economy tipping back into recession at 20 to 30 percent, but she said the job market is likely to remain weak.
"In our forecast, we expect just modest economic growth over the remainder of the year," Chmura said. "By most people's standards, it is almost going to feel like we are in a recession. It is not going to be strong enough growth to really bring down the unemployment rate, which is what most people look at."
Employment by industry sector in Virginia was a mixed bag in August, with five industry sectors gaining jobs and five losing them.
The gains came in private education and health services, construction, trade and transportation, finance and mining. The losses were in government, professional and business services, information, leisure and hospitality, and miscellaneous services.
Manufacturing employment did not change from July to August.
The unemployment rates for the Richmond metro area and other regions of Virginia are scheduled to be released Sept. 28.
Nationwide, the economy added no net jobs in August. Many employers pulled back on hiring after the economy barely grew in the first half of the year.
Employers in Virginia have added a net total of about 4,300 jobs this year, a growth rate of less than 1 percent.
Nevada had the nation's highest state unemployment rate for the 15th straight month. The rate there rose from 12.9 percent in July to 13.4 percent in August.
North Dakota had the nation's lowest unemployment rate, at 3.5 percent.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement