BUSINESS UPTURN REFLECTED IN IMPROVED JOBLESS FIGURES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 1, 1993                   TAG: 9304010081
SECTION: BUSINESS                    PAGE: A13   EDITION: METRO 
SOURCE: GEORGE KEGLEY STAFF WRITER
DATELINE:                                 LENGTH: Medium
BUSINESS UPTURN REFLECTED IN IMPROVED JOBLESS FIGURES
The Roanoke area's unemployment rate dropped to its lowest February level in three years, the result of slight business improvement and mild weather, the Virginia Employment Commission reported Wednesday.
The metro area's jobless rate was 4.8 percent of the work force, down from 5.7 percent in January and from 5.9 percent in February 1992. Statewide, the jobless rate fell to 5.5 percent in February from 6.5 percent a month earlier and 7.3 percent a year earlier.
The regional decline occurred before the peak of layoffs announced for Dominion Bankshares and Sears Telecatalog, which will stretch over coming months, said William F. Mezger, VEC research economist.
The statewide jobless rate suggests Virginia's economy seems to be emerging from the recession in most sectors, except for a few retail store closings and defense cuts, Mezger said.
Montgomery and Pulaski counties were the only areas of the state with increased unemployment - the result of recent layoffs at the Army ammunition plant in Radford, he said.
The greatest improvement was in the eastern part of the state. Roanoke usually trails eastern Virginia by about 30 days in the usual spring pickup, Mezger said.
The jobless rates for Roanoke and the state were the lowest since October. And it was the largest drop for one month since the early 1980s, when the economy was pulling out of a major recession, he said.
The VEC said the number of unemployed in the Roanoke area in February was 6,380, down 1,130 from January. The state jobless total declined 31,500 to 183,700.
Mezger credited the mild February weather for half of the improvement and the rest to a better economy. Builders and real estate people were active, he said, and theme parks began hiring early to get a jump on spring.
Despite the lower rate, the number of Roanoke-area residents at work fell 600 in February, mainly because of normal post-holiday reductions in retailing, along with a small number of manufacturing layoffs, Mezger said.
Roanoke still was a state leader in over-the-year employment with a 2.8 percent increase.
The snowfall at the end of February and the March 13-14 blizzard that closed interstate highways and temporarily shut many companies is expected to mean higher unemployment figures in the western and northern areas of the state, Mezger said. He predicted the March unemployment rate will be 5.4 percent to 5.5 percent, higher than the normal seasonal figure.
The VEC received about 1,800 to 1,900 weather-related claims for unemployment benefits after the blizzard, he said.
The number of people drawing jobless benefits in February was 2,259, down from 2,411 in January. New claims filed for the month averaged 183 a week, down from 298 in January.
While manufacturing employment was unchanged from January, average factory pay shrank $2.51 to $523.72 in February and the average factory work week was 42.1 hours, down 0.1.\ WESTERN VA. JOBLESS RATES\ Feb.\ Jan.1993\ 1993 Bath County14.5%20.5%Bedford, Bedford County4.9 %6.5 %Bland County3.7 %4.9 %Buchanan County11.3%13.3%Carroll County6.7 %8.2 %Covington-Clifton Forge7.8 %9.7 %Craig County7.6 %9.0 %Franklin County4.2 %5.9 %Galax area5.7 %7.2 %Grayson County5.0 %6.6 %Lexington, Buena Vista9.6 %10.9%Martinsville area5.1 %6.3 %Smyth County9.6 %10.9%Tazewell County9.4 %10.7%Washington County5.6 %6.3 %Wythe County8.4 %8.8 %

by Bhavesh Jinadra by CNB