Virginia’s December Unemployment Rate increased by 0.1 percentage points to 3.6 percent; Labor Force Participation Rate remained unchanged at 64.3 percent and Employment decreased by 4,791 to 4,363,598.

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Unemployment Rate increased by 0.1 percentage points to 3.6 percent; Labor Force Participation Rate remained unchanged at 64.3 percent and Employment decreased by 4,791 to 4,363,598

RICHMOND— Virginia Works – the Commonwealth’s Department of Workforce Development and Advancement – announced today that Virginia’s seasonally adjusted unemployment rate in December increased by 0.1 percentage points to 3.6 percent, which is 0.7 percentage points above the rate from a year ago. According to household survey data in December, the labor force decreased by 1,633 to 4,526,820 as the number of unemployed residents increased by 3,158 to 163,222. The number of employed residents decreased by 4,791 to 4,363,598 according to the Local Area Unemployment Statistics (“the household survey”). Virginia’s seasonally adjusted unemployment rate is 0.8 percentage points below the national rate, which decreased by 0.1 percentage points to 4.4 percent.

The Commonwealth’s labor force participation rate remained unchanged at 64.3 percent in December. The labor force participation rate measures the proportion of the civilian population age 16 and older that is employed or actively looking for work.

Month-Over-Month

In December’s Current Employment Statistics Survey, Virginia’s nonagricultural employment decreased by 4,100 to 4,262,200. November’s preliminary estimate of employment, after revision, decreased by 1,800 to 4,266,300. In December, private sector employment decreased by 5,600 to 3,505,900 while government employment increased by 1,500 to 756,300. Within that sector, federal government jobs decreased by 300 to 172,800, state government employment decreased by 100 to 162,700, and local government increased by 1,900 to 420,800 over the month.

Seasonally adjusted total nonfarm employment data is produced for eleven industry sectors. In December, five experienced over-the-month job gains, and six experienced a decline. The largest job gain occurred in Government (+1,500) to 756,300. The second largest job gains occurred in Education and Health Services (+600) to 641,600 and Miscellaneous Services (+600) to 209,600. The other gains were in Financial Activities (+400) to 222,600; and Information (+100) to 68,900.

The largest job loss occurred in Construction (-3,400) to 224,900. The second largest job loss occurred in Professional and Business Services (-1,800) to 809,100. The third largest job loss occurred in Trade, Transportation, and Utilities (-1,600) to 680,200. The other losses were in Leisure and Hospitality (-200) to 406,600; Manufacturing (-200) to 235,500; and Mining and Logging (-100) to 6,900.

Nonfarm Employment in Virginia* Seasonally Adjusted
Industry	Employment			November 2025 to December 2025		December 2024 to December 2025
	December 2025	November 2025	December 2024	Change	% Change	Change	% Change
Total Nonfarm	4,262,200	4,266,300	4,273,900	-4,100	-0.1%	-11,700	-0.3%
Total Private	3,505,900	3,511,500	3,507,900	-5,600	-0.2%	-2,000	-0.1%
Goods Producing	467,300	471,000	468,500	-3,700	-0.8%	-1,200	-0.3%
Mining and Logging	6,900	7,000	7,300	-100	-1.4%	-400	-5.5%
Construction	224,900	228,300	219,000	-3,400	-1.5%	5,900	2.7%
Manufacturing	235,500	235,700	242,200	-200	-0.1%	-6,700	-2.8%
Service-Providing	3,794,900	3,795,300	3,805,400	-400	-0.0%	-10,500	-0.3%
Private Service Providing	3,038,600	3,040,500	3,039,400	-1,900	-0.1%	-800	-0.0%
Trade, Transportation, and Utilities	680,200	681,800	678,400	-1,600	-0.2%	1,800	0.3%
Information	68,900	68,800	71,700	100	0.1%	-2,800	-3.9%
Financial Activities	222,600	222,200	219,700	400	0.2%	2,900	1.3%
Professional and Business Services	809,100	810,900	818,200	-1,800	-0.2%	-9,100	-1.1%
Education and Health Services	641,600	641,000	626,900	600	0.1%	14,700	2.3%
Leisure and Hospitality	406,600	406,800	419,000	-200	-0.0%	-12,400	-3.0%
Miscellaneous Services	209,600	209,000	205,500	600	0.3%	4,100	2.0%
Government	756,300	754,800	766,000	1,500	0.2%	-9,700	-1.3%
Federal Government	172,800	173,100	196,700	-300	-0.2%	-23,900	-12.2%
State Government	162,700	162,800	163,000	-100	-0.1%	-300	-0.2%
Local Government	420,800	418,900	406,300	1,900	0.5%	14,500	3.6%

*Current month’s estimates are preliminary.

Year-Over-Year

From December 2024 to December 2025, Virginia Works estimates that total nonfarm employment in Virginia decreased by 11,700 to 4,262,200, private sector employment decreased by 2,000 to 3,505,900, and government employment decreased by 9,700 to 756,300 jobs. Within that sector, federal government jobs decreased by 23,900 to 172,800, state government employment decreased by 300 to 162,700, and local government increased by 14,500 to 420,800 over the year.

For the eleven industry sectors in Virginia over the year, five experienced over-the-year job gains, and six experienced a decline. The largest job gain occurred in Education and Health Services (+14,700) to 641,600. The second largest job gain occurred in Construction (+5,900) to 224,900. The third largest job gain occurred in Miscellaneous Services (+4,100) to 209,600. The other gains were in Financial Activities (+2,900) to 222,600; and Trade, Transportation, and Utilities (+1,800) to 680,200.

The largest job loss occurred in Leisure and Hospitality (-12,400) to 406,600. The second largest job loss occurred in Government (-9,700) to 756,300. The third largest job loss occurred in Professional and Business Services (-9,100) to 809,100. The other losses were in Manufacturing (-6,700) to 235,500; Information (-2,800) to 68,900; and Mining and Logging (-400) to 6,900.

Nonfarm Employment in Virginia* Seasonally Adjusted
Area	Employment			November 2025 to December 2025		December 2024 to December 2025
	December 2025	November 2025	December 2024	Change	% Change	Change	% Change
Virginia	4,262,200	4,266,300	4,273,900	-4,100	-0.1%	-11,700	-0.3%
Arlington-Alexandria MSA	1,622,500	1,624,300	1,637,400	-1,800	-0.1%	-14,900	-0.9%
Blacksburg-Christiansburg-Radford MSA	82,400	82,400	83,900	0	0.0%	-1,500	-1.8%
Charlottesville MSA	126,400	126,700	125,500	-300	-0.2%	900	0.7%
Harrisonburg MSA	70,500	70,400	71,400	100	0.1%	-900	-1.3%
Lynchburg MSA	104,100	104,100	104,400	0	0.0%	-300	-0.3%
Richmond MSA	727,300	727,900	724,600	-600	-0.1%	2,700	0.4%
Roanoke MSA	168,100	168,100	168,600	0	0.0%	-500	-0.3%
Staunton MSA	53,900	54,000	53,900	-100	-0.2%	0	0.0%
Virginia Beach-Chesapeake-Norfolk MSA	815,400	816,800	827,000	-1,400	-0.2%	-11,600	-1.4%
Winchester MSA	74,300	74,600	73,600	-300	-0.4%	700	1.0%

*Current month’s estimates are preliminary.

Month-Over-Month

Seasonally adjusted total nonfarm employment data is produced for ten metropolitan areas. In December, one experienced over-the-month job gains, three remained unchanged, and six experienced a decline. The only job gain occurred in Harrisonburg (+100) to 70,500.

The largest job loss occurred in Arlington-Alexandria (-1,800) to 1,622,500. The second largest job loss occurred in Virginia Beach-Chesapeake-Norfolk (-1,400) to 815,400. The third largest job loss occurred in Richmond (-600) to 727,300. The other losses were in Charlottesville (-300) to 126,400; Winchester (-300) to 74,300; and Staunton (-100) to 53,900. Blacksburg-Christiansburg-Radford; Lynchburg; and Roanoke remained unchanged.

Year-Over-Year

Over the year, three metro areas experienced over-the-year job gains, one remained unchanged, and six experienced a decline. The largest job gain occurred in Richmond (+2,700) to 727,300. The second largest job gain occurred in Charlottesville (+900) to 126,400. The third largest job gain occurred in Winchester (+700) to 74,300.

The largest job loss occurred in Arlington-Alexandria (-14,900) to 1,622,500. The second largest job loss occurred in Virginia Beach-Chesapeake-Norfolk (-11,600) to 815,400. The third largest job loss occurred in Blacksburg-Christiansburg-Radford (-1,500) to 82,400. The other losses were in Harrisonburg (-900) to 70,500; Roanoke (-500) to 168,100; and Lynchburg (-300) to 104,100. Staunton remained unchanged.

Not Seasonally Adjusted Data

Virginia’s unadjusted unemployment rate decreased by 0.5 percentage points to 3.4 percent in December. It has increased by 0.9 percentage points to 3.4 percent compared to last year. Compared to a year ago, the number of unemployed increased by 37,659 to 153,029, household employment decreased by 105,845 to 4,337,005, and the labor force decreased by 68,186 to 4,490,034. Virginia’s not seasonally adjusted unemployment rate is 0.7 percentage points below the national unadjusted rate, which decreased by 0.2 percentage points to 4.1 percent.

Compared to last month, the December unadjusted workweek for Virginia’s 153,500 manufacturing production workers decreased by 0.8 to 38.2 hours. Average hourly earnings of private-sector production workers increased by $0.17 to $28.92, and average weekly earnings decreased by $16.51 to $1,104.74.

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Technical note: Estimates of unemployment and industry employment levels are obtained from two separate monthly surveys. Resident employment and unemployment data are mainly derived from the Virginia portion of the national Current Population Survey (CPS), a household survey conducted each month by the U.S. Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey). Industry employment data is mainly derived from the Current Employment Statistics (CES) survey, a monthly survey of approximately 18,000 Virginia businesses conducted by BLS, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states and most major metropolitan areas (often referred to as the “establishment” survey). Both industry and household estimates are revised each month based on additional information from updated survey reports compiled by the BLS. For national figures and information on how COVID-19 affected collection of the BLS establishment and household surveys in April 2020, refer to the BLS December Employment Situation press release for details.

The statistical reference week for the household survey this month was the week of December 7-13, 2025

Virginia Works plans to release the December local area unemployment rates on Wednesday February 04, 2026. The data will be available on our website www.VirginiaWorks.com. The January 2026 statewide unemployment rate and employment data for both the state and metropolitan areas are scheduled to be released on Monday March 17, 2025.

Dec 25 CES Distribution Publication File