Unemployment Drops Again, But Overall Employment Does, Too

The unemployment rate in West Virginia has fallen each of the last four months. But fewer West Virginians are actually working.  

In February, the statewide, seasonally adjusted unemployment rate was 4.7% after being 4.6% in January. In the recently released figures for May, the unemployment rate fell to 4.3%.  

But in the same period, the number of people actually working dropped by 3,800 state residents from 745,500 to 741,700.  

Unemployment is calculated based on the number of people who are actively seeking work. Those who have given up looking for jobs are not counted. In February, 36,500 residents were looking for work compared to 33,400 in May.  

Total nonfarm payroll employment increased by 9,700 from April to May, primarily from a spike in short-term election workers across the state. A downward spike is expected in June. 

The goods-producing sector saw a large loss in construction (-1,100) while manufacturing rose by 100 and mining and logging went unchanged. 

Professional and business services (+600) saw the second largest increase for the sector. Private education and health services rose by 400 as leisure and hospitality added 200 jobs each in May.  

Trade, transportation, and utilities saw a loss of 200 jobs, financial activities saw a loss of 100 jobs, and the information industry was unchanged. 

West Virginia’s labor force participation rate decreased by a tenth to 54% in May. That is the lowest in the United States.  

Labor force participation measures the number of civilian, noninstitutionalized people, aged 16 and older, who are actively working or seeking work. The national average is 61.8%. West Virginia’s 10 year high, in September 2023, is 55.3%. The 10-year low is 52.7% in April 2020, during the initial lockdowns of the COVID-19 pandemic.