Economy

Employment Growth

Employment Growth

Employment growth reflects the speed at which the economy can create and fill new jobs. The rate of employment growth was negative in 2008 and 2009 as the national recession continued.

Why is This Important?

Employment growth is an indicator of expansion in the economy that represents an increase in the economic opportunities available to the citizens of a region or the state. Employment growth is generally tracked as a percentage change from a previous year.

How is Hampton Roads Doing?

All regions in Virginia have seen employment growth shrink since 2007.  The Hampton Roads region had the fourth lowest rate of employment growth at -3.3 percent in 2009, while the Eastern region saw the least shrinkage at -0.8 percent. The statewide rate of employment growth was -2.5 percent.

Among peer Metropolitan Statistical Areas (MSAs), the Jacksonville, FL MSA had the lowest employment growth rate in 2009 at -4.32 percent.  The Virginia Beach-Norfolk-Newport News, VA-NC MSA (Hampton Roads MSA) saw an employment growth rate of -3.3 percent in 2009. The leading Virginia MSA was the Washington-Arlington-Alexandria, DC-VA-MD-WV MSA with a -1.2 percent employment growth rate.

Wages and Salaries

Average wages and salaries, coupled with employment growth, give an even better measure of a region's economic health. In 2009, the Hampton Roads area (both MSA and region) continued to have average salaries and wages below both the Virginia and national averages.  It had the second lowest average wages and salaries among peer MSAs at $42,969. The leading MSA in Virginia was the Washington-Arlington-Alexandria, DC-VA MSA at $64,601. Regionally speaking, however, the Hampton Roads area did enjoy the third highest average salary or wage, exceeded only by the Northern and Central regions.

  What Influences Employment Growth?

Some of the factors influencing employment growth in a region include the national business cycles and the mix of industries in the region. Expansions and contractions in the national economy influence employment growth due to the fluctuations in private and federal spending, as well as other factors. Furthermore, the mix of industries directly affects the magnitude of business cycle fluctuations in a region. In the Hampton Roads region, the U.S. military is a major employer and, therefore, U.S. military spending is an important influence on employment growth.