THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, February 4, 1995 TAG: 9502040278
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 57 lines
The number of jobless in Hampton Roads dipped below 5 percent for the first time in four years because of the strength of the retail and service sectors over the holidays, the Virginia Employment Commission reported Friday.
Unemployment in the region fell to 35,080, or 4.9 percent, in December 1994. That's the first time since December 1990 that the unemployment rate dropped below 5 percent, said William F. Mezger, senior economist at the Virginia Employment Commision.
``Right at the moment, Hampton Roads has been in as good a shape as any in the last four years,'' Mezger said. ``Hampton Roads has diversified to some extent.''
Total nonagricultural employment grew by 20,700, or 3.4 percent in December 1994 compared with a year earlier. Business, consulting, education services and retail have expanded steadily. Health care services also contributed to the region's growth, Mezger said.
Hampton Roads' employment trends seem to be tracking the state's.
Virginia reported an all-time employment high for the fourth consecutive month - 3.1 million residents had jobs in December. Jobless numbers in the state declined to 152,000, or 4.4 percent, compared with 4.5 percent in November 1994.
Nationally, the Commerce Department reported Friday that unemployment in January rose to 5.7 percent, compared with 5.4 percent in December, which was thelowest rate in four years.
Analysts said job growth may be peaking, especially after the Federal Reserve raised interest rates Wednesday for the seventh time in a year.
The Federal Reserve increased a key short-term interest rate a half-percentage point to 6 percent this week, double what it was a year ago, to slow the economy and stifle inflation.
Employment changes generally lag behind a shifting economy. Analysts anticipate that the economy is starting to slow already from its 4 percent expansion last year, the best performance in a decade.
Wall Street reacted positively to the unemployment news as the Dow Jones industrial average rose 57.87 points to 3,928.64, its highest single day gain since September. Stocks and bonds soared because the Fed's efforts to slow the economy and contain inflation appear to be working. MEMO: The Associated Press contributed to this report.
ILLUSTRATION: CHART
UNEMPLOYMENT IN VIRGINIA
STAFF
SOURCE: The Virginia Employment Commission
KEYWORDS: JOBLESS RATE UNEMPLOYMENT EMPLOYEMENT by CNB