Back to back positive news for Virginia’s economic outlook these last couple days as the Commonwealth’s unemployment rate dropped to its lowest level in three years while revenues increased at their highest rate in nearly a year.
Virginia’s unemployment rate peaked at 7.3% in January 2010, the same month Gov. Bob McDonnell took office. While the state’s low unemployment rate is a good sign, it’s not all rosy:
The decrease in unemployment was partially boosted by a shrinking labor market, as nearly 5,400 people chose to no longer look for work — more than the 4,500 people who actually found jobs in January. The number of individuals receiving unemployment benefits in Virginia also jumped from 54,434 in December 2011 to 63,508 in January.
Still, that’s down from 81,851 in January 2011. Nonfarm payroll employment jumped 47,900 in that time.
February revenue collections for Virginia were up 17.2% to the same period last year, though this is partially due to the leap year adding a day to the calendar. Still, the growth is the best for the state since last May when revenues jumped 17.9% to previous year. One sour bit in the report:
Insurance premium tax collections fell from $53.8 million a year ago to $25.5 million — likely a result of a slow commercial real estate market and lower business and housing valuations, the report says.
Whether this is a long term indicator or just a hesitation in the market will be seen in the coming months.
