THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, October 3, 1996 TAG: 9610030512
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY LON WAGNER, STAFF WRITER
LENGTH: 41 lines
The Hampton Roads unemployment rate dropped in August to 4.5 percent, bringing the region close to ``full employment,'' the Virginia Employment Commission reported Wednesday.
Virginia's unemployment rate also dipped to 4 percent, the lowest August jobless rate for the state since 1989.
The state and Hampton Roads unemployment rates were significantly lower than the United States unemployment rate of 5.1 percent.
The drop in the unemployment rate was due to students leaving the work force in August to return to school, a tourist season still in full swing and a boost in the business and professional services sector, said William F. Mezger, senior economist at the VEC.
Hampton Roads' August rate of 4.5 percent may be near ``full employment,'' Mezger said, because the military workers in the region bring with them spouses looking for jobs. ``Full employment'' is a term economists use to factor in routine churn in the job-seeking population.
``Hampton Roads is going to run about 1 percent above Richmond because of normal turnover of military dependents in the area,'' Mezger said. ``That's a good low rate for Hampton Roads.''
Richmond's 3.7 percent unemployment rate was an increase over that city's 3.6 July rate. Each of the state's other metropolitan areas posted dropped in their rates from July to August.
The coming months may be even better than August's strong showing, Mezger said.
``School is back in session, the construction industry is trying to get projects under cover before bad weather, it's harvest time in agriculture, and the retail sector is building for its busiest time of year,'' he said. ILLUSTRATION: Graphic
JOBLESS RATES
Hampton Roads 4.5%
Virginia 4%
United States 5.1% by CNB