Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, October 1, 1993 TAG: 9310010210
SECTION: BUSINESS PAGE: A-11 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The August unemployment rate dropped to 4.6 percent, an improvement over 5 percent in July and 5.1 percent a year earlier.
The changes were seasonal, according to William F. Mezger, senior economist with the Virginia Employment Commission in Richmond. "Not a whole lot is going on in the Roanoke area."
Students left the labor force, getting ready to return to school, meaning the number of people against whom the jobless rate was computed was smaller.
In July, several plants closed for vacation during the week in which the jobless count was taken. Some of those employees were not paid while the factories were shut, forcing them to collect jobless benefits instead.
The trade sector - retailing and wholesaling - was down in Roanoke in August because of the closing of the Sears Telecatalog Center. Mezger said that situation will improve when Retired Persons Services Inc. reopens the center Oct. 15.
Finance-sector employment held steady compared to July and to August 1992 despite the merger of Dominion Bankshares Corp. with First Union Corp., which eliminated about 850 Roanoke Valley jobs.
First Union is engaged in "a lot of internal shuffling," Mezger said, moving people around rather than laying them off.
The number of valley residents filing initial claims for benefits rose sharply to 239, compared with 187 in July and 168 a year ago. But the earlier figures were based on a five-week month, while August this year had four weeks for survey purposes, Mezger said.
The total number of people receiving benefits in the Roanoke area improved to 1,902, from 2,099 in July and 2,211 last year.
Across Virginia, the jobless rate also fell: 0.4 of a percentage point from 5.5 percent in July to 5.1 percent in August. That was the best rate since May, when the jobless level was also 5.1 percent.
The number of jobless workers was down 14,100 to 171,900.
Mezger said that usually happens this time of year for the same reasons that the Roanoke rate dropped. In addition, harvest activities began in August.
But he said the rate didn't drop quite as much as expected.
Despite the lowest level of new benefit claims in almost four years, Mezger said, workers furloughed earlier in defense reductions remained unemployed. That affected Hampton Roads, Northern Virginia and the New River Valley.
"While fewer people were losing jobs," he said, "those that did become unemployed, particularly from the defense industries, were remaining unemployed longer."
Mine employment was down 800, to 12,600 people, as the United Mine Workers' strike spread to some Virginia mines.
Statistically, striking workers are considered part of the labor force, but are not counted as either employed or unemployed.
Trade employment was off because very hot, dry weather kept shoppers out of the stores.
Finance remained unchanged as small gains at mortgage brokers balanced out small losses in insurance and real estate.
Mezger found an encouraging sign in the fact that construction contractors added 1,600 jobs statewide.
"August is normally a period when building activities are starting to recede from the traditional July employment peak," he said.
Virginia's production workers earned a record average weekly wage of $451.41 in August, which was 83 cents above July and $8.35 higher than a year ago.
The production workweek held constant at 41.3 hours, 0.2 of an hour longer than last August.
The average hourly factory pay rate was $10.93, up 2 cents from July and 15 cents from last year.
The commission expects unemployment to remain unchanged in September, then drop slightly in October as retail activity increases.
by CNB