The economy may be on the threshold of recession, depending on what metric you want to use to define recession. But, Virginia's economy is showing strong signs of growth.
Virginia's unemployment rate is at 2.8%. That's the lowest since the start of the pandemic back in March 2020. But Sarah Lyon-Hill at Virginia Tech says that progress is not uniform across Virginia.
"In southwest, southern Virginia, you still have higher unemployment rates than you'd see in northern Virginia," Lyon-Hill says. "Even some of Hampton Roads is still a little higher than what you're seeing in that 2.8% there. They are all doing better than they were. All of that unemployment is declining."
Unemployment may be declining as the labor force is expanding. But, the labor force participation rate hasn't really changed in recent months, which Terry Clower at George Mason University says is a warning sign.
"That gap still suggests that there may be something over 200,000 Virginians who used to be in the labor force that still aren't," explains Clower. "And no matter what business you talk to, what's their number one challenge now; and that’s finding workers."
Hotels and restaurants across Virginia are still struggling to find workers in a post-pandemic economy where many workers are not counted in the unemployment numbers because they left the labor force and are not currently looking for work.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
