Virginia Beach Jobs Report

The Virginia Beach area has one of the lowest unemployment rates in the state as well as the nation.  The national average, now above 10%, is nearly 3.5% points higher than the official jobless rate in Virginia Beach.  The state of Virginia has one of the lowest unemployment rates in the nation as a whole.  This is a great place for those looking for new jobs or to relocate to a fresh economy.  The city itself is built upon many diverse economic pillars.  There is a strong tourism sector as well as a rather large military presence.  These two sectors have helped to boost consumer activity in the area and keep the unemployment numbers low.

The area is also home to numerous international corporations representing many different employment sectors.  This is one reason the region has had such a great time outrunning the economic downturn of the recession, and this economic diversity is a common denominator in most of the more successful US cities.  Companies like Geico, and Amerigroup have huge facilities in the city.  There are several other large corporate giants here as well.  The recent growth of this area has helped to keep its head above water economically, and the Virginia Beach area will likely be at the forefront of the economic recovery at home once it appears on the horizon.

Defense spending accounts for much of the economic activity in the area.  There are over 150,000 government employees in the city, and multiple military bases.  These bases help to secure both government and private contractor jobs and business and give the city’s economy a much needed spending and tourism boost.  Couple this with a relatively low cost of living for a major east coast city, and you have a recipe for robust and sustainable economic development.

Unemployment benefit claims have been rising steadily in the Virginia Beach area, and have nearly doubled since September 2008.  This is a mixed message for the Virginia Beach economy and employment environment.  More people claiming benefits could be regarded as a negative, since there are more people who are unemployed.  But the upside to this is the fact that the people who are receiving the unemployment assistance are being counted as part of the 6.7% unemployment rate.  And given the large increase in unemployment benefit claims, the unemployment rate is still quite low.  This suggests that there are jobs being created nearly as fast as they are being lost. 

For every person that contributes to the official unemployment rate, there is likely another person not contributing to it.  Whether or not the official rate will fall due to people no longer being able to claim unemployment benefits remains to be seen.  There will likely be some negative backlash from all the people who cannot find work or who are underemployed and wish they could work more or have a steady full time job. 

The Virginia Beach area has it far better economically than most other US cities.  It will likely be able to ride out this recession and keep its official unemployment rate below the national average the entire time due to its economically diverse and sustainable foundation.