DATE: Tuesday, September 30, 1997           TAG: 9709300290

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY MICHAEL CLARK, STAFF WRITER 

                                            LENGTH:   47 lines

REGIONAL JOB FIGURES LESS STRONG THAN VIRGINIA'S

The Virginia Employment Commission's August unemployment report looked good for Virginia, good for the United States, but not entirely good for Hampton Roads.

The report, released Monday by the VEC, showed August unemployment falling to 4.1 percent, from the 4.3 percent of last July and August 1996. The August unemployment rate was also the best Virginia has seen for that month since 1989.

August unemployment in the United States also fell to 4.8 percent, from 5 percent in July and 5.1 percent in August 1996.

While the Hampton Roads rate of 5.2 percent in August was lower than July's 5.4 percent, it was also higher than the rate of 4.7 percent in August 1996.

The rise from a year ago could be a leftover from shipyard furloughs earlier this year, said William F. Mezger, VEC senior economist.

Mezger said Hampton Roads had 3,966 new unemployment claims in August, compared with 5,361 in July and 3,987 in August 1996.

``In transportation equipment and shipyards, attrition continues,'' Mezger said. ``Some private Norfolk shipyards have had some difficulty with contracts. The situation is improving, but there are some residual problems.''

Still, August was a good month, Mezger said.

``It was a continuation of the strong trends we have had.''

Among those trends, business services continue to grow at a rapid pace, Mezger said. Construction, in particular, is at its best level since November 1989.

Virginia often experiences good unemployment rates each fall, the VEC reported. Schools reopen and builders try to get projects under cover before harsh weather arrives.

That trend might not register in Hampton Roads, Mezger said, because the area generally runs 1 percent to 1.5 percent higher than areas such as Richmond and Charlottesville.

``The normal turnover of military dependents, people who quit jobs in San Diego, Pensacola, and move to the area, affects the rate,'' he said. ``Between 4 percent and 4.5 percent is probably as close as Hampton Roads gets to full employment.''

For the August report, every Hampton Roads city had higher unemployment in 1997 than in the same month in 1996. Virginia Beach, Chesapeake, Norfolk and Portsmouth had lower rates in August than July. Virginia Beach had the lowest overall rate at 4.3 percent, and Portsmouth had the highest at 8.5 percent. KEYWORDS: EMPLOYMENT STATISTICS UNEMPLOYMENT

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