ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, July 9, 1996 TAG: 9607090084
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
The Roanoke Valley economy isn't creating jobs nearly as fast as it did a year ago, but the region is far from having a job shortage, state labor officials said Monday.
Unemployment stood at 2.6 percent in May, with 3,370 people unable to find work, according to the Virginia Employment Commission.
That rate has remained at or below 5 percent since February 1993 for the combined area of Roanoke, Salem, Roanoke County and Botetourt County.
Local employers aren't hiring like before, however. From May 1995 to May 1996, the region gained 500 jobs, or 0.4 percent of the region's total work force. By comparison, one year ago the yearly gain was 4,200 positions, or 3.1 percent.
"Growth generally has slowed down all over," said William Mezger, senior economist with the VEC.
Make no mistake, the picture Mezger paints is one of a generally stable job market. While the overall job supply is not growing as fast as it used to, neither is it shrinking.
Mezger speculated that some employers would hire more people if they could find them. For more than a year, the VEC's Roanoke office has heard anecdotal reports of a shortage of people willing to perform the lowest-paying jobs, such as those in stores, restaurants and in some cases at temporary help firms.
"Certain jobs can't be filled because they can't come up with enough people to do it," Mezger said.
Mezger said Roanoke area temporary employment companies are among the types of businesses most affected by the current situation. The statistical category in which jobs at temporary firms are counted - business, engineering and management services - posted a 5.5 percent loss between May 1995 and May 1996, equal to about 700 jobs.
Restaurant jobs, which grew 9 percent between May 1994 and May 1995, fell 3.7 percent between May 1995 and this May, the VEC said. Retail trade jobs, which grew 5.6 percent between May 1994 and May 1995, grew at one-seventh that rate - 0.8 percent - between May 1995 and this past May.
The hiring slowdown is evident in basic industries as well.
Manufacturing employment rose 3 percent from May 1994 to May 1995; in the 12 months ended this past May, it fell 0.05 percent. Health care jobs, which grew 1.6 percent from May 1994 to May 1995, were unchanged in the most recent report.
In contrast, government employment is growing faster than a year ago - at a rate of 2.3 percent vs. no growth in May 1995.
LENGTH: Medium: 52 linesby CNB