Area loses 500 jobs in 1 year

By Brian McNeill

Published: November 14, 2008

The Charlottesville region’s economy suffered a net loss of 500 jobs between September 2007 and September of this year, marking the worst performance of Virginia’s nine largest metropolitan areas.

New labor figures released Thursday showed that the Charlottesville region’s total employment fell by 0.5 percent to 102,700 workers.

The Charlottesville Metropolitan Statistical Area — which includes Charlottesville and the counties of Albemarle, Fluvanna, Greene and Nelson — was the only metropolitan area in the state that saw a net loss of jobs during that period.

Gaining more jobs than they lost were Northern Virginia, Blacksburg, Roanoke, Richmond, Lynchburg, Harrisonburg, Winchester and Hampton Roads.

“We know that our community — our nation — is in a funk,” said Timothy Hulbert, president and chief executive officer of the Charlottesville Regional Chamber of Commerce. “We’re insulated somewhat because of the university, but it’s showing here.”

The Charlottesville region’s lost jobs over the past year were primarily in the construction and manufacturing industries. At the same time, the tourism, trade and business services industries posted higher employment figures.

“At the beginning of the year, Charlottesville had the best job growth numbers in the state,” said Bill Mezger, chief economist with the Virginia Employment Commission. “It gradually dwindled over the summer. And in August, you started going minus.”

September was the second consecutive month that showed negative job growth in the Charlottesville area, Mezger said.

The local labor market might improve in the next month or so as the University of Virginia reaches its full level of employment, Mezger said. However, initial reports for October show that the job losses may continue, he said.

Aubrey Watts, director of Charlottesville’s Office of Economic Development, said he was “not shocked” to hear that the region has shed jobs.

“That any region of the state would show a slowdown in employment would not surprise me at all,” he said. “To some extent, I’m surprised that other regions in the state gained jobs.”

Watts said the Charlottesville area’s labor market is fairly stable and manages to weather economic downturns. The local market, he added, rarely sees the huge job losses seen elsewhere in the state when large manufacturing facilities close.

The Charlottesville region’s economy is mostly made up of small firms with fewer than 50 employees, he said. However, the gloomy economy may lead to a few such companies going out of business, he said.

Several companies have announced layoffs in the comings months, including Circuit City, LexisNexis and Luck Stone.

Luck Stone announced Thursday that it is eliminating an estimated 10 jobs in the Charlottesville area through layoffs and reassignments.

In other dismal economic news Thursday, the Chamber of Commerce released a new report showing a decline in sales tax collections for Charlottesville and Albemarle County.

The two localities saw retail sales drop by 3.74 percent from January through September, as compared with the same period in 2007, according to sales tax statistics by the Virginia Department of Taxation.

The report includes a few bright spots, as retail sales rose in Greene and Louisa counties. Greene reported a rise of 2.62 percent in sales, while Louisa’s retail activity shot up 19.07 percent. Louisa has seen increased development of shops, expanding its overall retail base.

In a written statement, chamber Chairman Christopher Lee of Piedmont Virginia Cos. urged shoppers to shop locally during the upcoming holiday season.

“Our local consumers can defy national trends by keeping our confidence in our regional economy and local retailers,” he said. “Starting now through the holiday season, our chamber encourages consumers to support our local economy. Our area has always weathered economic storms well, in large part because our citizens believe in the vitality and sustainability of our economic community. Together we can do more than just survive, we can thrive.”