Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 2, 1993 TAG: 9307020007
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
State job officials said the figures should be even worse when June is reported; that's when the high schoolers and high school graduates started looking for summer work
Because of the college students, Virginia's labor force grew 16,400 to a record 3,424,000. This was greater than the 3,600 expansion in total employment to 3,248,700, so unemployment increased 12,800 to 175,300.
Virginia's jobless rate stood at 5.1 percent compared to 4.8 percent in April and 6.4 percent a year ago.
In the Roanoke metropolitan area, the rate was 4.4 percent against 4.2 percent in April and 5.3 percent in May 1992.
The number of Virginians drawing jobless benefits in May was 33,000, down from 36,000 in April and 49,000 in May. Initial claims for benefits also fell to the lowest level in 44 months.
The Virginia Employment Commission said the jobless increase in May came entirely from students and graduates entering the labor market, rather than from layoffs.
Nonagricultural wage and salary jobs increased 17,800 from April to May this year, less than the 23,000 to 25,000 gain normal for this time of year, indicating that the pace of recovery in Virginia may have slowed in the second quarter.
Much of the slowed job growth seemed to be in seasonal trade, services and transportation, primarily in the two biggest metro areas: Northern Virginia and Hampton Roads.
Spring and Mother's Day sales and tourist business at restaurants added 8,300 to the trade sector. The service industry was boosted by seasonal gains at amusement parks and hotels.
Construction was up, as well, but a rise in manufacturing was caused by the return to work by striking chemical workers in the Richmond-Petersburg area.
Modest gains were reported in trucking, finance, insurance and real estate. On the other hand, government employment fell with the end of classes at state colleges and universities.
Virginia's 303,900 production workers earned an average weekly wage of $443.36, $4.62 more than April and $4.58 more than May of last year.
The average factory work week of 40.9 hours was 0.5 of an hour longer than in April, but 0.3 of an hour less than the prior May.
The average hourly production pay rate of $10.84 was two cents less than in April but 19 cents more than last year.
Much of May's joblessness increase was in Northern Virginia, Hampton Roads and Richmond-Petersburg metro areas; they have large numbers of students returning home.
For the second month in a row, Charlottesville had the lowest metro jobless rate at 3.2 percent, edging out Northern Virginia at 3.6 percent.
Fairfax and Manassas Park tied for the lowest community rate of 2.3 percent. Dickinson County, at 14.5 percent, had the highest rate.
In the Roanoke area, Bedford County reported 4.8 percent in May, up from 4.4 percent in April. The rate remained level at 4.6 percent in Franklin County.
The commission said the Virginia rate should rise next month to 5.2 or 5.3 percent.
By July, many of the students will either have found work or dropped out of the job market. July, on the other hand, usually sees an increase in adult unemployment with the traditional summer vacation plant closings.
The commission predicted it will be August before the state unemployment rate returns to the 4.8 percent level of April.
by CNB