Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, August 4, 1993 TAG: 9308040069
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The Roanoke Valley jobless rate jumped from 4.4 percent in May to 4.7 percent in June, the Virginia Employment Commission reported Tuesday. But the rate was an improvement over the 4.9 percent of last year.
The number of people without jobs in the valley increased from 5,850 in May to 6,160 in June.
For Virginia, the rate was up from 5.1 percent to 5.3 percent, but there also was an improvement from the prior June, when the rate was 6.4 percent.
The number of jobless Virginians rose by 4,600 to 179,800 people. The jump had been expected, though, as high school students and graduates joined college students in the search for summer or permanent work.
At the same time, the VEC said, there was less tourist activity than usual because Northeastern schools were in session well into June. That meant families from the North, who constitute most of Virginia's tourists, were not yet free to begin vacations.
And dry weather was beginning to have an impact on agricultural employment.
June is the peak month for young people to be in the labor market, the commission said, and their situation was slightly better this year than in 1992.
Last year saw the smallest number of summer jobs in a decade. This June brought more summer hires in food service, retailing and residential construction.
William F. Mezger, VEC research economist, said most of the Roanoke increase was due to students in the job market, but the figures also reflect some industrial layoffs, specifically at Gardner-Denver and ITT.
Mezger said many of the workers who left Roanoke's Sears Telecatalog Center, still in the process of closing, were part-time or temporary and had other full-time jobs.
The number of people employed in finance remained stable despite acquisition of Dominion Bankshares Corp. by First Union National Bank of Virginia. Mezger said the company apparently is "shuffling" employees into newly created jobs. Others may not be seeking work because they have severance pay.
Unemployment remained high in the New River Valley. Pulaski's rate was second highest in the state behind Dickinson County.
Mezger said the New River Valley situation reflected students entering the work force, layoffs at the Radford Army Ammunition Plant and a reduced summer schedule at Virginia Tech and Radford universities.
The number of Virginians drawing jobless benefits fell to 31,000 in June from 33,000 in May and 50,000 a year ago.
Initial claims averaged 4,100 per week, below both the 4,500 per week of May and the 6,700 per week of last June.
Services registered the biggest job increases, rising 9,400 to a record 787,700 and surpassing the previous all-time high set in May. Good gains were made in health, management and business services.
Manufacturing was up 1,700 to 403,800, with gains largely among producers of building supplies and food products.
Trade also increased, primarily through gains by furniture and apparel retailers.
Trucking accounted for most of the gain in transportation, although airlines added a few workers.
Mine employment rose marginally. Government was the only major sector to suffer a setback, as schools and universities closed.
Virginia production workers earned a record average weekly wage of $448.93, $2.85 more than May and $4.46 higher than June 1992.
The average length of the production work week, 41.3 hours, was 0.3 hour longer than May but 0.2 hour shorter than last June.
The average hourly pay rate, $10.87, was a penny less than May but 15 cents more than last year.
The commission projects a July unemployment rate for Virginia of 5.1 to 5.2 percent because most of the students either will have found jobs or left the work force.
Meanwhile, the commission said, vacation closings in July appear to be light. If so, that could be a harbinger of improved business activity and employment in the fall.
by CNB