The labor market has gotten considerable attention recently as experts attempt to forecast the economy’s future. Several indicators suggest that the U.S. labor market is likely to soften in 2025; however, statistics show that the labor market has been increasing, providing slight reassurance to economic concerns. A recent report from the Bureau of Labor Statistics recorded 228,000 more payroll jobs in March compared to February, but unemployment rose slightly to 4.2%. When it comes to the state of Virginia, signs indicate that the commonwealth’s labor force appears to be cooling.  

According to the Bureau of Labor Statistics, the seasonally adjusted unemployment rate in Virginia rose slightly to 3.1%. Although unemployment has increased by 0.3 percentage points compared to last February, the rate remains lower than the national average. The labor force in the state shrank by 5,056 residents, bringing the total to roughly 4.6 million. Virginia’s nonfarm payroll jobs reached 4,266,100, marking a drop of 1,000 jobs from last month, yet an increase of 54,100 compared to the same time last year (seasonally adjusted).  

Seasonally adjusted nonfarm employment data is generated for ten metropolitan areas in Virginia. The Arlington-Alexandria MSA saw the largest uptick in job gains in February, with 700 more jobs added from January. Month-to-month job growth also occurred in the Winchester metro area, with 200 additional jobs, and in Charlottesville, with 100 additional jobs. Staunton remained stagnant at 54,100 jobs. The most noticeable job loss occurred in Virginia Beach-Chesapeake-Norfolk as numbers slipped to 824,800, showing a 2,200 difference from January. Job loss was also evident in Blacksburg-Christiansburg-Radford (-1,000), Harrisonburg (-700), Richmond (-500), Lynchburg (-300), and Roanoke (-300) compared to the previous month.  

Job Sectors 

Sectors experienced noticeable month-to-month growth, while others saw a decline in employment. The construction sector led the charts, adding 4,200 jobs to reach a total of 218,000 jobs in February. Education and health services gained 2,100 jobs, while trade, transportation, and utilities added 2,000 jobs. Other sectors, such as Financial Activities (+200 jobs), Miscellaneous (+300 jobs), and Manufacturing (+1,000 jobs), saw considerable growth in employment.  

Meanwhile, other key sectors experienced notable contractions, including Professional and Business Services (-6,300 jobs), Leisure and Hospitality (-2,400 jobs), Information (-1,200 jobs), and Mining and Logging (-100 jobs). Federal government jobs decreased by 600 to 196,100, and state government jobs declined by 1,400 to 160,800 compared to the month before.  

The rise in construction jobs may indicate continued demand for housing and infrastructure projects, which bodes well for Virginia’s real estate industry. Growth in the health and education sector demonstrates demand for community needs, while declines in business services and hospitality could reflect a shift in consumer and corporate behavior. Moreover, the decrease in government positions could affect public services and the economic stability of regions that depend on federal and state employment.  

Data from February indicated a softening labor market in Virginia, though unemployment remains comparatively lower than the national average. Monitoring the upcoming months will clarify whether this is a temporary slowdown or the start of a more lingering trend.