>>Click here for the full report (pdf)

>>Click here for the full release (pdf)

November 23, 2009

RICHMOND, VA – It’s bad, and it’s going to get worse. Since the Great Recession started in December 2007, Virginia’s growth in unemployment rate has been two- to three-times that of the 1981 and 2001 recessions. Substantial job losses have wiped out  the gains of the recent economic expansion. Wage declines continued for most workers, and a weak safety net in Virginia has meant that only a fraction of unemployed workers are actually covered by the unemployment insurance system.

These and other trends are documented in a new, comprehensive report, Scratching the Surface: The State of Working Virginia in the Great Recession, released today by The Commonwealth Institute for Fiscal Analysis in Richmond. “And this is just the tip of the iceberg,” says Michael Cassidy, Executive Director. “Sharp increases in unemployment, wage declines for most workers and continued deterioration in workers’ health insurance coverage has been coupled with the fact that Virginia workers pay the greatest share of insurance premiums in the country,” says Cassidy. “As the effects of the recession drag on, these challenges will only increase.”

These discouraging trends stem from just the first year (2008) of what has become a prolonged recession.But there is some good news: despite these strongly negative trends, Virginia workers continue to be among the most productive in the United States, and more Virginia workers are engaged in the labor market than ever.

For the third straight year, The State of Working Virginia report examines trends in employment, wages, labor force demographics and employee benefits. It documents the many successes and challenges of Virginians in the current economy.