Economy

Unemployment

Unemployment

The unemployment rate -- the number of employable but currently unemployed people seeking jobs -- is a vital indicator of the health of a region's economy and the happiness and satisfaction of its citizens. Even as the nation began to recover from the national recession in 2010, unemployment rates continued to rise in many regions across the country. The unemployment rate in the Hampton Roads region remained slightly higher than Virginia’s overall unemployment rate, but lower than the national average. A strong military presence in the region has helped stabilize unemployment rates.

Why is This Important?

Unemployment is a measure of how many people without jobs are actively seeking employment. Since most people earn a living from a job, unemployment is a measure of how well the economy provides opportunities for individuals to support themselves and their families. Unemployment not only hurts the personal finances of those without jobs, but also reduces their participation in the overall economy. The inability to find work is also associated with psychological stress, health problems, and stress on family relationships.

How is Hampton Roads Doing?

Although the national economy began to emerge from recession in 2010, unemployment rates continued to rise for many. The Hampton Roads region saw an increase in its unemployment rate from 7.0 percent in 2009 to 7.4 percent in 2010; however, the region did enjoy the second lowest unemployment rate among Virginia’s eight regions. Unemployment rates were lower only in the Northern region (5.2%) and for Virginia as a whole (6.9%).

A 2010 unemployment rate of 7.4 percent in the Virginia Beach-Norfolk-Newport News, VA-NC MSA (Hampton Roads MSA) was also lower than its peer MSAs and the average for the United States. However, the rate for other Virginia metropolitan areas was 6.8 percent, while the Charlottesville MSA had the lowest rate among Virginia's MSAs at 5.9 percent in 2010.

What Influences Unemployment?

In the short-term, the rate of unemployment fluctuates with the national business cycle. Federal spending within Virginia also influences the economy. The long-term factors that affect the unemployment rate in Virginia and the Hampton Roads region also affect the area's overall competitiveness: education, infrastructure investments, tax rates, and the regulatory environment. Any changes that improve the region's attractiveness as a place to live or do business will, over longer periods of time, tend to reduce the unemployment rate.