Virginia jobless rate up slightly

Students entering an already-clogged job market and cuts in the automotive industry propelled Virginia's jobless rate up 0.3 percentage points to 7.3 percent in June, the Virginia Employment Commission reported yesterday.

A year ago, Virginia's unemployment rate was 4 percent.

The seasonally unadjusted rate is lower than the national average, which is 9.7 percent, according to data released yesterday.

In the Richmond region, the rate increased by 0.4 percentage points to 8.4 percent.

At 14.7 percent, Petersburg continued to have the highest jobless rate in the region. Powhatan County had the lowest rate, 6.5 percent, up only 0.1 percentage point, commission data showed.

In June, high school students joined college students and graduates still on the prowl for work and competing with people already in the job market because of layoffs and closures.

"The summer job market hasn't been good," said William F. Mezger, chief economist for the Virginia Employment Commission. "I would say it probably is the worst summer job market since 1982."

Troubles at General Motors and Chrysler, which recently emerged from bankruptcy, led to furloughs and layoffs at vehicle-industry supply firms. Chrysler dealership closures also added to the numbers, Mezger said.

All but one of Virginia's 10 metropolitan areas saw an increase in the jobless rate. Only Danville, which has the highest metro-area unemployment rate of 12.8 percent, did not see a change.

Statewide, the city of Martinsville continued to have the highest rate, coming in a 21.6 percent, while Arlington County had the lowest rate at 4.7 percent.

The Richmond metropolitan statistical area has the 15th-lowest jobless rate among large metro areas in the United States, according to the Bureau of Labor Statistics.

Northern Virginia is second and Hampton Roads is ranked sixth out of 49 metro areas with populations of more than 1 million.

Contact Emily C. Dooley at (804) 649-6016 or .