Richmond, VA – Despite signs of economic recovery, Virginia’s job market is still struggling to regain its pre-pandemic strength. In February 2021, the state reported a slight decline in non-farm employment, slipping by 3,700 jobs (0.1%) to a total of 3,893,700 jobs statewide, according to the Virginia Employment Commission (VEC).
This brings Virginia’s total job shortfall to 197,300, a 4.8% decline compared to February 2020, before the pandemic’s impact was fully realized.
Northern Virginia, Richmond, and Hampton Roads Among Hardest Hit
The economic downturn has affected various regions differently, with Northern Virginia, Richmond, and Hampton Roads bearing the brunt of the job losses:
- Northern Virginia remains down 80,500 jobs, accounting for 41% of the state’s total job loss, with employment 5.2% lower than the previous year.
- Richmond saw a 6% year-over-year decline, losing 41,500 jobs in February.
- Hampton Roads reported a drop of 35,200 jobs, reflecting a 4.4% decrease in employment.
- Charlottesville had the largest percentage drop, with employment down 8.4% to 112,200 jobs.
These figures highlight the regional disparities in job recovery, with urban and tourism-heavy areas facing greater challenges.
Leisure and Hospitality Sector Struggles to Rebound
The leisure and hospitality industry continues to experience the most significant losses, with 85,500 fewer jobs compared to the previous year—a 20.5% decline. This sector, which includes restaurants, hotels, and entertainment venues, has been disproportionately affected due to prolonged restrictions and changes in consumer behavior.
Other Sectors Show Mixed Recovery
While some industries have struggled, others have shown relative stability:
- Construction employment remained largely unchanged, showing resilience amid economic uncertainty.
- State and local government jobs declined 5.2% and 9.5%, respectively, reflecting budget cuts and financial constraints at the municipal level.
- Federal employment in Virginia increased 0.9%, providing a small but stable source of job growth.
The road to full employment recovery remains uncertain. While some industries are seeing slow improvements, Virginia still faces a long climb to regain nearly 200,000 lost jobs. Economists suggest that continued vaccine distribution, easing restrictions, and economic stimulus efforts will play a crucial role in bringing jobs back.
With some sectors stabilizing and others still struggling, Virginia’s employment outlook will depend on how quickly businesses can adapt and how soon consumer confidence returns.
Key Employment Statistics in Virginia (February 2021 vs. February 2020):
- Total job shortfall: 197,300 jobs (4.8% decline)
- Northern Virginia: Down 80,500 jobs (5.2% decline)
- Richmond: Down 41,500 jobs (6% decline)
- Hampton Roads: Down 35,200 jobs (4.4% decline)
- Charlottesville: Down 8.4% (largest percentage drop)
- Leisure & Hospitality losses: 85,500 jobs (20.5% decline)
- State & Local Government jobs: Declined 5.2% and 9.5%, respectively
- Federal employment: Increased 0.9%