ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 7, 1991                   TAG: 9103070085
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE:                                 LENGTH: Medium


JOBLESS RATE RISES IN VIRGINIA/ ROANOKE AREA HOLDING UP BETTER THAN STATE'S

Seasonal cutbacks in retailing and furloughs at textile, furniture and auto assembly factories pushed the state unemployment rate up to 5.8 percent in January.

But the Roanoke area's rate rose only 0.5 of a percentage point to 3.9 percent, the second lowest, after Northern Virginia, among Virginia urban areas.

The state's rate went up 0.9 of a percentage point to its highest level in five years, the Virginia Employment Commission said Wednesday.

Despite layoffs at several small firms, Roanoke is "holding up probably better than any area in the state," said William F. Mezger, research economist for the VEC. Roanoke "doesn't seem to have been touched by the recession at all," he said.

The state rate was the highest since 5.8 percent in February 1986. It was up from 4.4 percent a year ago but it was far better than the national rate of 7 percent.

Higher January unemployment was reported in the metropolitan areas and Western Virginia counties. The exception was Martinsville and Henry County, where slight declines reflected an easing of layoffs in sweat-suit and furniture manufacturing, Mezger said.

A number of industries in the state have been reducing inventories by working three weeks and closing the fourth week of each month, he said.

Although Roanoke employment declined by 2,000 jobs from December to January, the area's job growth in the past year was the best among the metropolitan areas of the state. Roanoke's employment advanced by 1.8 percent or 2,200 jobs in the past year, Mezger said.

Roanoke employment at the end of January stood at 127,500, after decreases of 600 jobs in construction, 200 in manufacturing and 1,200 in service companies.

Employment in the state increased by 3,800 jobs, or 0.1 percent, to 2.9 million in the past year.

Mezger predicted the February jobless rate will be about 5.6 percent to 5.8 percent for the state.

The number of people drawing unemployment benefits in the Roanoke area in January was 1,722, an increase of 150 from December. The average number of new claims for benefits was 940 per week in January, more than double the 448 reported in December.

Roanoke's jobless rate was 4.7 percent in January, up from 4.2 percent in December and 4.2 percent a year ago. Roanoke County reported a 2.9 percent rate in January, up from 2.6 percent in December and a year earlier.

Salem's rate was 3.6 percent in January, up from 2.8 percent in December and 2.5 percent a year ago. Botetourt County's rate reached 3.9 percent in January, up from 3.4 percent in December and 3.2 percent a year ago.

Roanoke area factory workers' average pay increased by $6.74 a week in January, while the average factory work week was shortened slightly from 41.5 to 40.7 hours, according to VEC figures.

Elsewhere in Western Virginia:

Martinsville's rate was 9.6 percent, down from 10.8 percent in December; Henry County's was 9.2 percent, down from 10.8 percent; Bath County was highest in the state at 25.8 percent but its rate was down from 25.9 percent.

Radford reported 10 percent, up from 8.4 percent; Bedford, 5.8 percent, up from 4.7 percent; Buena Vista-Lexington-Rockbridge County, 7.2 percent, up from 5.1 percent; Covington-Clifton Forge, 10.6 percent, up from 8.7 percent; Galax, 9.5 percent, up from 8 percent.

Among counties, Bland had 6.5 percent, up from 5.5 percent; Carroll, 9.1 percent, up from 7.4 percent; Craig, 8.6 percent, up from 5.5 percent; Floyd, 9.5 percent, up from 7.5 percent; Giles, 12 percent, up from 9.6 percent; Montgomery, 8.2 percent, up from 6.9 percent, and Pulaski, 12.2 percent, up from 10.8 percent.

Franklin, 9.3 percent, up from 7.4 percent; Grayson, 11.1 percent, up from 9.4 percent; Patrick, 6.2 percent, up from 5.6 percent; Smyth, 9.6 percent, up from 7 percent; Tazewell, 9.5 percent, up from 7.1 percent; Washington, 6.4 percent, up from 5.9 percent, and Wythe, 9.6 percent, up from 7.5 percent.



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