NORFOLK, Va. — NORFOLK, Va.— Virginia's unemployment rate is on the rise. In fact it's the highest it's been since August of 2021 according to a recent report from the U.S Bureau of Labor Statistics.
Bob McNab, an Economic Professor at Old Dominion University tells News 3 that Virginia may be starting to see the impact of federal job cuts.
"This is extremely concerning. We're seeing a downsizing in the federal government impacting the amount of jobs available in Virginia. That's the first side of the coin" said McNab.
McNab added the other side of the coin is the labor force dropping. Currently Virginia's jobless rate sits at 3.5% up from 2.9% in December according to the U.S Bureau of Labor Statistics. To put things into perspective, Virginia's unemployment rate is still below the national rate of 4.1%.
McNab says the rise could have to do with cuts made by the Trump Administration to the size of the federal workforce, but more information is still needed.
"We're seeing uncertainty with federal government spending, uncertainty with trade, and not surprisingly the downturn in federal government. Grants and contracts is driving job loses particularly in Nothern Virginia and we've heard of some here in Hampton Roads as well.
If you are unemployed Virginia Career Works is a free resource that can help with career transitions, especially if the trend continues.
