The Virginian-Pilot 
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, September 1, 1995              TAG: 9509010518
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER 
                                             LENGTH: Short :   47 lines

JOBLESS RATE DROPS TO 4.9% IN JULY IN HAMPTON ROADS ECONOMIST CREDITS DECREASE IN LAYOFFS IN DEFENSE INDUSTRY.

The region's jobless rate fell to 4.9 percent in July, a reflection of a stronger economy, students quickly finding summer employment and fewer defense-industry layoffs.

The number of unemployed dropped to 36,600 in Hampton Roads, the Virginia Employment Commission reported Thursday.

That's down from 5.3 percent in June and 5.7 percent a year ago.

``Part of that is due to the fact that you're not having as much in the way of layoffs in the defense industry,'' said William F. Mezger, senior economist at the Virginia Employment Commission. The biggest defense and shipyard cutbacks took place in 1993, he said.

``The economy is much stronger now,'' Mezger said. ``These students were less of a factor this summer because so many of them found jobs. All those things combined to give it a low rate.''

Virginia enjoyed its lowest July unemployment rate since 1990. Five years ago, the state's jobless fell to 4.5 percent, or 161,000 jobless people, compared with 4.8 percent in June.

The state's labor force swelled by 12,600 to a record 3.59 million. The average weekly production wage reached a new high of $494.21.

Northern Virginia, Roanoke and Charlottesville have unemployment rates hovering around 3 percent, which makes hiring qualified workers difficult for some businesses, Mezger said.

Unemployment in Hampton Roads usually runs about 1 percent higher than most of the other metropolitan areas because of continual job turnover with military dependents. So, a jobless rate below 5 percent usually means a tight job market for this region. ILLUSTRATION: Graphic

STAFF

UNEMPLOYMENT IN VIRGINIA

Unemployment in the state fell to its lowest July level since 1990.

Hampton Roads' jobless rate fell in July to 4.9 percent.

SOURCE: The Virginia Employment Commission

[For complete graphic, please see microfilm]

by CNB