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. As the national recession deepened in 2009, the unemployment rate in the Hampton Roads region was slightly higher than the overall unemployment rate in Virginia. However, a strong military presence in the region helps keep unemployment below the national average.

Why is This Important?

Unemployment is a measure of how many people without jobs are actively seeking employment. Since employment is the way most people earn a living, 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?

The Hampton Roads region experienced an increase in the unemployment rate from 4.2 to 6.8 percent in 2009 with the continued downturn in the national economy. In the most recent year, the Hampton Roads region had the second lowest unemployment rate among the eight regions in Virginia. The unemployment rates were lower in the Northern region and Virginia as a whole in 2009.

In 2009, the unemployment rate was lower in the Virginia Beach-Norfolk-Newport News, VA-NC MSA (Hampton Roads MSA) relative to its peers and the average for the United States. The unemployment rate in the Hampton Roads MSA was 6.8 percent. However, the rate for Virginia metropolitan areas was lower at 6.7 percent and the Charlottesville MSA had the lowest rate among Virginia's MSAs at 5.6 percent in 2009.

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.