Virginia Payrolls Increase by 7,200 in August, Unemployment Rate remains at 3.6 percent

September 19, 2025

RICHMOND— Virginia Works – the Commonwealth’s Department of Workforce Development and Advancement – announced today that Virginia’s nonagricultural employment increased by 7,200 to 4,281,600, according to August’s Current Employment Statistics Survey. July’s estimate of employment, after revision, increased by 2,700 to 4,274,400. In August, private sector employment increased by 9,300 to 3,518,900 while government employment decreased by 2,100 to 762,700. Within that sector, federal government jobs decreased by 1,800 to 185,200, state government employment increased by 200 to 165,500, and local government decreased by 500 to 412,000 over the month.

Virginia’s seasonally adjusted unemployment rate in August remained unchanged at 3.6 percent, as the number of unemployed residents decreased by 51 to 162,662. According to household survey data in August, the labor force decreased by 5,081 to 4,547,540. The number of employed residents decreased by 5,030 to 4,384,878 according to the Local Area Unemployment Statistics (“the household survey”). Virginia’s seasonally adjusted unemployment rate is 0.7 percentage points below the national rate, which increased by 0.1 percentage points to 4.3 percent.

The Commonwealth’s labor force participation rate decreased by 0.2 percentage points to 64.7 percent in August. The labor force participation rate measures the proportion of the civilian population age 16 and older that is employed or actively looking for work.

Seasonally adjusted total nonfarm employment data is produced for eleven industry sectors. In August, five experienced over-the-month job gains, one remained unchanged, and five experienced a decline. The largest job gain occurred in Education and Health Services (+4,600) to 639,000. The second largest job gain occurred in Miscellaneous Services (+3,100) to 208,700. The third largest job gain occurred in Professional and Business Services (+1,900) to 807,100. The other gains were in Construction (+1,500) to 232,200 and Manufacturing (+100) to 239,100.
The largest job loss occurred in Government (-2,100) to 762,700. The second largest job loss occurred in Financial Activities (-600) to 220,700. The third largest job loss occurred in Information (-600) to 70,100. The other losses were in Trade, Transportation, and Utilities (-400) to 678,300; and Leisure and Hospitality (-300) to 416,600. Mining and Logging remained unchanged.

*Current month’s estimates are preliminary.

From August 2024 to August 2025, Virginia Works estimates that total nonfarm employment in Virginia increased by 44,400 to 4,281,600, private sector employment increased by 34,200 to 3,518,900, and government employment increased by 10,200 to 762,700 jobs. Within that sector, federal government jobs decreased by 8,700 to 185,200, state government employment increased by 5,800 to 165,500, and local government increased by 13,100 to 412,000 over the year.

For the eleven industry sectors in Virginia over the year, seven experienced over-the-year job gains, and four experienced a decline. The largest job gain occurred in Education and Health Services (+27,600) to 639,000. The second largest job gain occurred in Construction (+12,700) to 232,200. The third largest job gain occurred in Government (+10,200) to 762,700. The other gains were in Miscellaneous Services (+3,800) to 208,700; Leisure and Hospitality (+2,200) to 416,600; Trade, Transportation, and Utilities (+800) to 678,300; and Information (+100) to 70,100.
The largest job loss occurred in Professional and Business Services (-8,000) to 807,100. The second largest job loss occurred in Manufacturing (-4,100) to 239,100. The third largest job loss occurred in Financial Activities (-600) to 220,700. The other loss was in Mining and Logging (-300) to 7,100.

*Current month’s estimates are preliminary.

Seasonally adjusted total nonfarm employment data is produced for ten metropolitan areas. In August, six experienced over-the-month job gains, and four experienced a decline. The largest job gain occurred in Virginia Beach-Chesapeake-Norfolk (+1,000) to 822,100. The second largest job gain occurred in Richmond (+800) to 735,300. The third largest job gain occurred in Charlottesville (+500) to 126,400. The other gains were in Lynchburg (+200) to 104,800; Staunton (+100) to 54,000; and Winchester (+100) to 74,500.
The largest job loss occurred in Blacksburg-Christiansburg-Radford (-500) to 82,400. The second largest job loss occurred in Harrisonburg (-500) to 71,400. The third largest job loss occurred in Roanoke (-300) to 168,100. The other loss was in Arlington-Alexandria (-100) to 1,633,200.

Over the year, eight metro areas experienced over-the-year job gains, and two experienced a decline. The largest job gain occurred in Richmond (+14,600) to 735,300. The second largest job gain occurred in Arlington-Alexandria (+6,100) to 1,633,200. The third largest job gain occurred in Charlottesville (+1,700) to 126,400 and Winchester (+1,700) to 74,500. The other gains were in Roanoke (+1,000) to 168,100; Lynchburg (+800) to 104,800; Staunton (+500) to 54,000; and Blacksburg-Christiansburg-Radford (+300) to 82,400.
The largest job loss occurred in Harrisonburg (-700) to 71,400. The second largest job loss occurred in Virginia Beach-Chesapeake-Norfolk (-700) to 822,100.

Not Seasonally Adjusted Data

Virginia’s unadjusted unemployment rate increased by 0.1 percentage points to 3.9 percent in August. It has increased by 0.6 percentage points to 3.9 percent compared to last year. Compared to a year ago, the number of unemployed increased by 24,802 to 175,560, household employment decreased by 74,075 to 4,366,940, and the labor force decreased by 49,273 to 4,542,500. Virginia’s not seasonally adjusted unemployment rate is 0.6 percentage points below the national unadjusted rate, which decreased by 0.1 percentage points to 4.5 percent.

Compared to last month, the August unadjusted workweek for Virginia’s 154,600 manufacturing production workers decreased by 0.2 to 38.0 hours. Average hourly earnings of private-sector production workers decreased by $0.11 to $28.45, and average weekly earnings decreased by $9.89 to $1,081.10.

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Technical note: Estimates of unemployment and industry employment levels are obtained from two separate monthly surveys. Resident employment and unemployment data are mainly derived from the Virginia portion of the national Current Population Survey (CPS), a household survey conducted each month by the U.S. Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey). Industry employment data is mainly derived from the Current Employment Statistics (CES) survey, a monthly survey of approximately 18,000 Virginia businesses conducted by BLS, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states and most major metropolitan areas (often referred to as the “establishment” survey). Both industry and household estimates are revised each month based on additional information from updated survey reports compiled by the BLS. For national figures and information on how COVID-19 affected collection of the BLS establishment and household surveys in April 2020, refer to the BLS August Employment Situation press release for details.

The statistical reference week for the household survey this month was the week of August 10-16, 2025

Aug 25 CES Distribution Publication File