Non-Farm Payroll Increases by 1200 in May – Virginia’s May Unemployment Rate at 3.4 percent – Labor Force Participation Rate at 65.2percent

RICHMOND— Virginia Works – the Commonwealth’s Department of Workforce Development and Advancement – announced today that Virginia’s seasonally adjusted unemployment rate in May increased by 0.1 percentage points to 3.4 percent, which is 0.6 percentage points above the rate from a year ago. According to household survey data in May, the labor force decreased by 11,531 to 4,568,075 as the number of unemployed residents increased by 3,929 to 155,918. The number of employed residents decreased by 15,460 to 4,412,157 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 remained unchanged at 4.2 percent.

The Commonwealth’s labor force participation rate decreased by 0.2 percentage points to 65.2 percent in May. The labor force participation rate measures the proportion of the civilian population age 16 and older that is employed or actively looking for work.

In May’s Current Employment Statistics Survey, Virginia’s nonagricultural employment increased by 1,200 to 4,276,100. April’s preliminary estimate of employment, after revision, increased by 2,200 to 4,274,900. In May, private sector employment increased by 3,900 to 3,517,600 while government employment decreased by 2,700 to 758,500. Within that sector, federal government jobs decreased by 3,100 to 188,100, state government employment decreased by 400 to 160,500, and local government increased by 800 to 409,900 over the month.

Seasonally adjusted total nonfarm employment data is produced for eleven industry sectors. In May, five experienced over-the-month job gains, one remained unchanged, and five experienced a decline. The largest job gain occurred in Professional and Business Services (+3,500) to 811,500. The second largest job gain occurred in Trade, Transportation, and Utilities (+1,100) to 681,200. The third largest job gain occurred in Miscellaneous Services (+800) to 207,000. The other gains were in Leisure and Hospitality (+700) to 419,300 and Education and Health Services (+500) to 631,800.

The largest job loss occurred in Government (-2,700) to 758,500. The second largest job loss occurred in Construction (-1,900) to 226,800. The third largest job loss occurred in Information (-400) to 70,100. The other losses were in Manufacturing (-300) to 242,300 and Financial Activities (-100) to 220,500.
Mining and Logging remained unchanged.

*Current month’s estimates are preliminary.

From May 2024 to May 2025, Virginia Works estimates that total nonfarm employment in Virginia increased by 49,400 to 4,276,100, private sector employment increased by 41,700 to 3,517,600, and government employment increased by 7,700 to 758,500 jobs. Within that sector, federal government jobs decreased by 4,900 to 188,100, state government employment increased by 2,700 to 160,500, and local government increased by 9,900 to 409,900 over the year.

For the eleven industry sectors in Virginia over the year, six experienced over-the-year job gains, and five experienced a decline. The largest job gain occurred in Education and Health Services (+27,600) to 631,800. The second largest job gain occurred in Construction (+8,400) to 226,800. The third largest job gain occurred in Government (+7,700) to 758,500. The other gains were in Trade, Transportation, and Utilities (+4,100) to 681,200; Miscellaneous Services (+3,000) to 207,000; and Leisure and Hospitality (+2,500) to 419,300.

The largest job loss occurred in Manufacturing (-1,800) to 242,300. The second largest job loss occurred in Professional and Business Services (-1,300) to 811,500. The third largest job loss occurred in Financial Activities (-500) to 220,500. The other losses were in Mining and Logging (-200) to 7,100 and Information (-100) to 70,100.

*Current month’s estimates are preliminary.

Seasonally adjusted total nonfarm employment data is produced for ten metropolitan areas. In May, five experienced over-the-month job gains, one remained unchanged, and four experienced a decline. The largest job gain occurred in Richmond (+2,600) to 730,500. The second largest job gain occurred in Arlington-Alexandria (+1,400) to 1,636,800. The third largest job gain occurred in Harrisonburg (+300) to 70,700. The other gains were in Winchester (+200) to 74,200 and Lynchburg (+100) to 105,000.

The largest job loss occurred in Virginia Beach-Chesapeake-Norfolk (-1,000) to 822,400. The second largest job loss occurred in Charlottesville (-400) to 125,600. The third largest job loss occurred in Blacksburg-Christiansburg-Radford (-100) to 81,900. The other loss was in Staunton (-100) to 54,100. Roanoke remained unchanged.

Over the year, seven metro areas experienced over-the-year job gains, and three experienced a decline. The largest job gain occurred in Arlington-Alexandria (+20,100) to 1,636,800. The second largest job gain occurred in Richmond (+12,300) to 730,500. The third largest job gain occurred in Charlottesville (+1,600) to 125,600. The other gains were in Virginia Beach-Chesapeake-Norfolk (+1,000) to 822,400; Winchester (+1,000) to 74,200; Lynchburg (+800) to 105,000; and Roanoke (+500) to 167,900.

The largest job loss occurred in Blacksburg-Christiansburg-Radford (-1,300) to 81,900. The second largest job loss occurred in Harrisonburg (-1,100) to 70,700. The third largest job loss occurred in Staunton (-200) to 54,100.

Not Seasonally Adjusted Data

Virginia’s unadjusted unemployment rate increased by 0.2 percentage points to 3.5 percent in May, which is 0.7 percentage points higher than last year. Compared to a year ago, the number of unemployed increased by 32,162 to 160,999, household employment decreased by 76,739 to 4,381,271, and the labor force decreased by 44,577 to 4,542,270. Virginia’s not seasonally adjusted unemployment rate is 0.5 percentage points below the national unadjusted rate, which increased by 0.1 percentage points to 4.0 percent.

Compared to last month, the May unadjusted workweek for Virginia’s 156,100 manufacturing production workers increased by 0.1 to 38.7 hours. Average hourly earnings of private-sector production workers decreased by $0.33 to $28.30, and average weekly earnings decreased by $9.91 to $1,095.21.

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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 May Employment Situation press release for details.

The statistical reference week for the household survey this month was the week of May 11-17, 2025

May 25 CES Distribution Publication File