Data Shows Improvement in Our Local Economy

Move beyond the headlines and dig into the data, and you will find small but promising signs of improvement in our local economy.

While the unemployment rate for our region remains high when compared to this time last year, the number of people filing unemployment claims has declined at a steady pace since early July. The number of continued claims for unemployment filed in our region during the week of August 29 was 5,492, a 43% drop from the high mark of 9,659 continued claims filed during the week of May 9. Continued claims are made by individuals who have filed an initial claim for unemployment and are now making weekly claims to continue receiving benefits.

The unemployment rate for our region also continues to fall. Last week the Virginia Employment Commission reported a 7.5% unemployment rate for the Lynchburg Metropolitan Statistical Area (MSA) during July 2020, down from our most recent peak of 10.6% in April. Our current unemployment rate is below the national average of 10.5% and the statewide average of 8%. Our rate is also lower than that of nearby areas such as Roanoke (7.7%) and Charlottesville (7.6%).
For those who are able to work, a wide range of openings are available at all levels of experience. Since early August no fewer than 1,200 job postings have been listed on the National Labor Exchange every day within 25 miles of Lynchburg. Anchor employers such as Abbott, Bausch + Lomb, BWXT, and Framatome are actively hiring. Sodexo has listed dozens of positions over the last month for food service work at Liberty University, providing employment for one of the hardest-hit sectors of our local workforce. Retailers large and small are consistently filling positions ranging from management to entry level. For those needing to stay home, J.Crew is hiring customer service representatives who can telework from the Lynchburg area at a starting rate of $12 per hour.

Manufacturing employment continues to show strength. A report from the Federal Reserve Bank of Richmond showed increases in shipments, new orders, and employment among manufacturers in the Federal Reserve’s fifth district, which includes Virginia, North Carolina, South Carolina, West Virginia, and Maryland. The region’s composite index of manufacturing activity rose from 10 in July to 18 in August, according to the Federal Reserve bank’s regional survey of business activity. Results of the survey, released August 25, showed an increase of capital expenditures and wages reported by businesses.

One concern highlighted in the Federal Reserve’s report was the challenge of locating skilled workers to fill open positions. Local training providers and educational institutions are working hard to close the skills gap, with many training options available virtually. This month the Martinsville-based New College Institute will offer its first classes in a novel partnership with Amazon, which will allow 100 people in our part of the Commonwealth to train for careers and land work in the growing cloud-based technology sector. Classes are being held entirely online and are free to residents of Appomattox, Bedford, and Campbell counties, thanks to a grant from the Virginia Tobacco Region Revitalization Commission.

Altogether these positive developments in our local workforce provide reason for optimism during challenging and difficult times. The Central Virginia Workforce Development Board stands ready to assist our local employers and training providers, to expand upon present opportunities and build a dynamic labor pool that is well prepared to meet the needs of a post-pandemic economy.