The number of out-of-work Virginians filing new claims for unemployment rose for the first time after the number had dropped week-over-week for 11 consecutive weeks.
The Virginia Employment Commission reported that 31,955 claims for unemployment were filed the week ending June 27, the highest number in more than a month and 6,662 more than the prior week.
The agency reported that while most states saw their initial claims decline during the week, Virginia’s was the fourth-largest increase in initial unemployment claims among the 50 states. Indiana, Michigan and Washington reported more. Across the United States, new claims dropped by about 55,000 to 1.43 million.
As of June 27 there were still 366,714 claims for on-going unemployment benefits, or about 40% of all the initial claims made since the pandemic began. The number of continuing claims dropped week over week by 8,865 claims.
“One week does not make a trend, but after weeks of declining claims, it certainly gives one pause that the recovery may not be swift or uninterrupted,” said Old Dominion University economist Robert McNab.
Talking about Hampton Roads, McNab said, “we don’t operate in a vacuum. Our economy is connected with that of the Commonwealth and the nation. Increasing infections in North Carolina and other states have likely dampened demand for goods and services from Hampton Roads. Second, because of rising infections elsewhere, the anticipated increases in tourism and hospitality may be arriving slower than expected,” he said. “Businesses that brought employees back on payroll may now find themselves with fewer customers than expected and may also be exhausting their financial resources. As a result, some businesses may be scaling back operations.”
