Virginia boasts one of the strongest labor forces in the country. As of September 2024, there are 4.25 million jobs in the state, according to the Bureau of Labor Statistics. The unemployment rate in Virginia stands at 2.9%, ranking 8th lowest in the nation, which is significantly lower than the national rate of 3.9%, based on recently released data. Certain job sectors have experienced notable growth in 2024, contributing to the evolution of Virginia’s labor force. Understanding these job trends is crucial for anticipating demand in key areas of the housing market across the state. 

Sectors 

According to the Bureau of Labor Statistics, the top five job sectors with the most notable growth so far in 2024 have been construction, healthcare, administrative & waste services, leisure & hospitality, and state government jobs.  

The construction sector in Virginia saw a remarkable surge in 2024, driven by a growing demand for skilled professionals. Many construction companies are facing challenges in finding qualified employees. However, with federal support, the industry is attracting a new wave of construction workers trying to rebound from the pandemic. Since January, the construction industry has added 9,000 new jobs (seasonally adjusted). Construction workers preferably want to live near their infrastructure projects which can create demand for moderately priced single-family homes or affordable rentals. 

The demand for healthcare services in Virginia is on the rise, fueled by a growing focus on healthcare access, an aging population, and advancements in medical technology. Since January, the healthcare industry in Virginia has added 8,800 new jobs, highlighting the urgent need for more healthcare professionals. This trend also suggests potential demand for entry-level homes near health centers or hospitals. 

The administrative and waste services consist of administrative support roles, waste disposal services, and facilities management which is essential to the operations of many industries. There has been steady growth in Virginia, which has a high industrial and corporate presence. Virginia recorded 8,500 additional jobs in this industry since the beginning of the year (seasonally adjusted). A moderate housing income is essential for these workers since many of these jobs are in suburban and urban areas. This demand will most likely seek affordable rental communities or starter homes especially regions adjacent to the suburbs. 

The leisure and hospitality sector has seen growth in Virginia’s tourist areas. Since January, 7,300 jobs have been added in this industry. Affordable housing near these tourist hotspots is crucial for this labor force. Many of these workers are drawn to low-cost housing, seasonal rentals, or vacation rentals. 

The growth of state government jobs has exceeded that of other sectors in Virginia, such as professional and technical services, retail trade, and other services. Since January, the state has added 5,800 jobs (seasonally adjusted) across various departments. The income for these state positions varies by department, but many employees have stable salaries that enable them to pursue homeownership. State government workers typically reside in nearby counties known for their good schools, especially those living close to Washington, D.C. 

As the housing market continues to stay competitive, gaining insight into why demand is shifting offers a unique advantage. Virginia’s labor trends have an impact on all its residents, and by staying informed, real estate professionals can better align with buyers’ and renters’ needs in housing.  

Check out our data page for updated information on Virginia’s labor force.