THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, March 17, 1996                 TAG: 9603160105
SECTION: CHESAPEAKE CLIPPER       PAGE: 11   EDITION: FINAL 
SERIES: Chesapeake Business Review 
SOURCE: BY JENNIFER C. O'DONNELL, STAFF WRITER 
                                             LENGTH: Short :   38 lines

CITY'S JOBLESS RATE FELL SLIGHTLY IN '95

Chesapeake experienced a slight decline in its average annual unemployment rate last year. According to preliminary figures from the Virginia Employment Commission, Chesapeake's average unemployment rate fell to 4.3 percent from 5.2 percent last year.

William F. Mezger, a senior economist with the VEC, said the drop was more a reflection on the economy of Hampton Roads as a whole. Last year, the Hampton Roads average unemployment rate dropped to 4.9 percent from 5.7 percent.

``Hampton Roads experienced growth in the service-related industries last year, and the defense cuts didn't have a profound impact on the area,'' said Mezger.

Although the city's unemployment rate dropped last year, November proved to be a difficult month when the rate reached a high for the year of 5.3 percent.

``Part of that increase is due to the closing of the Ford plant that month,'' said Mezger. Mezger recalled that the plant closed temporarily before switching over to the '97 models.

Most Chesapeake residents work outside the city, he said.

Chesapeake's jobless rate is still less than the state's average annual unemployment rate of 4.5 percent.

``I think 1996 will be just about the same for Chesapeake. The unemployment figures might even drop slightly. Chesapeake is still a rapidly growing city, which always helps reduce unemployment.'' by CNB