Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, September 3, 1994 TAG: 9409070028
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: By MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
William Mezger, senior economist with the commission in Richmond, said the Roanoke Valley "right at the moment seems to be doing pretty good."
Even as the unemployment rate fell, however, the number of people working also declined, by 4.2 percent from 136,100 in June to 135,300 in July.
Mezger attributed that 900-job drop to 10-month public school employees being removed from the payroll along with some decline in the service sector.
The number of people working in the valley in the important areas of manufacturing and construction rose by 200 and 300, respectively.
"Everything else seemed to be in very good shape," Mezger said. "Things are going quite well right at the moment in Roanoke."
The Roanoke Valley seemed little affected by July plant closings, he said. Plant vacations, however, have an impact in Martinsville and Danville; and Mezger said that had a negative impact on employees living in Franklin and Floyd counties who commute to jobs in Martinsville. Plant closings also hit Pulaski County.
The Roanoke Valley's unemployment rate for August and September will fall below 4 percent, Mezger predicted.
Virginia's unemployment rate dropped from 5.5 percent to 5.1 percent, the best rate since 4.7 percent in April. The size of the state's labor force set a record for the third consecutive month.
Seasonal factors, primarily college and high school students either finding work or leaving the summer job market, caused the unemployment rate decline, Mezger said. The annual influx of summer job-seekers always produces higher unemployment rates in May and June.
The state's labor force was at another all-time high of 3,475,600 in July despite the departing students.
Employment, however, was down statewide by 19,600 people to 3 million, reflecting release of school personnel. High levels of employment were reported in construction, travel, agriculture and self-employment.
Virginia's 5.1 percent July unemployment rate was well below the U.S. July level of 6.2 percent, but was slightly above the Virginia rate of 4.9 percent the prior July.
The number of Virginia residents drawing unemployment benefits was 32,000 in July, up slightly from 30,000 in June. Cumulative initial claims for July were 27,961 compared with 25,896 in June.
Mezger said the large number of recently hired workers who had not yet earned vacation time to cover plant closings, and who therefore filed for benefits, increased the July claims level.
Virginia's 304,800 production workers earned a record average weekly wage of $472.08, which was 98 cents above June and $26.30 more than in July of last year.
The average workweek, at 42 hours, was one-tenth of an hour shy of June's 42.1 hour 30-year record.
The average hourly factory wage of $11.24 an hour was up 5 cents from June and was 42 cents greater than last year.
Mezger said Virginia usually experiences its lowest unemployment rates of the year in the third and fourth quarters.
He predicted that the August statewide rate, to be reported in late September, would be about 4.9 percent.
by CNB