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News Release Information

20-1506-PHI
Thursday, July 30, 2020

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Virginia Beach Area Employment — June 2020

Local Rate of Employment Loss Slower Than National Average

Total nonfarm employment for the Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area stood at 744,600 in June 2020, down 7.6 percent over the year, the U.S. Bureau of Labor Statistics reported today. During the same period, the national job count declined 8.7 percent. Sheila Watkins, the Bureau’s regional commissioner, noted that the June decrease was the fourth consecutive month of over-the-year job losses in the Virginia Beach metropolitan area. (See chart 1 and table 1. The Technical Note at the end of this release contains the metropolitan area definition. All data in this release are not seasonally adjusted; accordingly, over-the-year analysis is used throughout.)

In the Virginia Beach metropolitan area, leisure and hospitality had the largest employment decrease from June 2019 to June 2020, losing 18,900 jobs. The local rate of job loss in leisure and hospitality was 19.1 percent, compared to this industry’s national rate decrease of 27.1 percent.

Virginia Beach’s professional and business services supersector had the second largest decline over the year, losing 12,200 jobs. The local rate of job loss in the supersector was 10.5 percent; nationally, the rate of job loss was 7.4 percent.

Two other supersectors had job losses greater than or equal to 8,000 over the year. Trade, transportation, and utilities lost 8,400 jobs, and government lost 8,000. The local rate of job loss in trade, transportation, and utilities was 6.4 percent, compared to the 7.0-percent loss nationally. The local rate of job loss in government was 4.9 percent; nationally, the rate of decline was 5.8 percent. (See chart 2.)

Metropolitan area employment data for July 2020 are scheduled to be released on Friday, August 21, 2020, at 10:00 a.m. (EDT).

Coronavirus (COVID-19) Pandemic Impact on June 2020 Establishment Survey Data

BLS has continued to review all estimation and methodological procedures for the establishment survey, which included the review of data, estimation processes, the application of the birth-death model, and seasonal adjustment. Business births and deaths cannot be adequately captured by the establishment survey as they occur. Therefore, the Current Employment Statistics (CES) program uses a model to account for the relatively stable net employment change generated by business births and deaths. Due to the impact of COVID-19, the relationship between business births and deaths is no longer stable. Typically, reports with zero employment are not included in estimation. For the May final and June preliminary estimates, CES included a portion of these reports in the estimates and made modifications to the birth-death model. In addition for both months, the establishment survey included a portion of the reports that returned to reporting positive employment from reporting zero employment. For more information, see www.bls.gov/web/empsit/cesbd.htm.

 

In the establishment survey, workers who are paid by their employer for all or any part of the pay period including the 12th of the month are counted as employed, even if they were not actually at their jobs. Workers who are temporarily or permanently absent from their jobs and are not being paid are not counted as employed, even if they are continuing to receive benefits. The length of the reference period does vary across the respondents in the establishment survey; one-third of businesses have a weekly pay period, slightly over 40 percent a bi-weekly, about 20 percent semi-monthly, and a small amount monthly.


Technical Note

This release presents nonfarm payroll employment estimates from the Current Employment Statistics (CES) program. The CES survey is a Federal-State cooperative endeavor between State employment security agencies and the Bureau of Labor Statistics.

Definitions. Employment data refer to persons on establishment payrolls who receive pay for any part of the pay period which includes the 12th of the month. Persons are counted at their place of work rather than at their place of residence; those appearing on more than one payroll are counted on each payroll. Industries are classified on the basis of their principal activity in accordance with the 2017 version of the North American Industry Classification System.

Method of estimation. CES State and Area employment data are produced using several estimation procedures. Where possible these data are produced using a "weighted link relative" estimation technique in which a ratio of current-month weighted employment to that of the previous-month weighted employment is computed from a sample of establishments reporting for both months. The estimates of employment for the current month are then obtained by multiplying these ratios by the previous month's employment estimates. The weighted link relative technique is utilized for data series where the sample size meets certain statistical criteria.

For some employment series, the sample of establishments is very small or highly variable. In these cases, a model-based approach is used in estimation. These models use the direct sample estimates (described above), combined with forecasts of historical (benchmarked) data to decrease volatility in estimation. Two different models (Fay-Herriot Model and Small Domain Model) are used depending on the industry level being estimated. For more detailed information about each model, refer to the BLS Handbook of Methods.

Annual revisions. Employment estimates are adjusted annually to a complete count of jobs, called benchmarks, derived principally from tax reports which are submitted by employers who are covered under state unemployment insurance (UI) laws. The benchmark information is used to adjust the monthly estimates between the new benchmark and the preceding one and also to establish the level of employment for the new benchmark month. Thus, the benchmarking process establishes the level of employment, and the sample is used to measure the month-to-month changes in the level for the subsequent months.

Reliability of the estimates. The estimates presented in this release are based on sample surveys, administrative data, and modeling and, thus, are subject to sampling and other types of errors. Sampling error is a measure of sampling variability—that is, variation that occurs by chance because a sample rather than the entire population is surveyed. Survey data are also subject to nonsampling errors, such as those which can be introduced into the data collection and processing operations. Estimates not directly derived from sample surveys are subject to additional errors resulting from the special estimation processes used. The sums of individual items may not always equal the totals shown in the same tables because of rounding.

Employment estimates. Measures of sampling error for the total nonfarm employment series are available for metropolitan areas and metropolitan divisions at www.bls.gov/sae/additional-resources/reliability-of-state-and-area-estimates.htm. Measures of sampling error for more detailed series at the area and division level are available upon request. Measures of sampling error for states at the supersector level and for the private service-providing, goods-producing, total private and total nonfarm levels are available on the BLS website at www.bls.gov/sae/additional-resources/reliability-of-state-and-area-estimates.htm. Information on recent benchmark revisions is available online at www.bls.gov/sae/publications/benchmark-article/annual-benchmark-article.pdf.

Area definitions. The substate area data published in this release reflect the standards and delineations issued by the U.S. Office of Management and Budget, dated April 10, 2018. A detailed list of the geographic definitions is available at www.bls.gov/lau/lausmsa.htm.

 

The Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area includes Gloucester, Isle of Wight, James City, Mathews, Surry, and York Counties and Chesapeake, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, and Williamsburg cities in Virginia and Currituck County in North Carolina.

Additional information

More complete information on the technical procedures used to develop these estimates and additional data appear in Employment and Earnings, which is available online at www.bls.gov/opub/ee/home.htm. Detailed industry employment data for metropolitan areas from the CES program are available from the State and Area Employment databases at www.bls.gov/sae/data/home.htm.

 

Information in this release will be made available to sensory impaired individuals upon request. Voice phone:  (202) 691-5200; Federal Relay Service:  (800) 877-8339.

Table 1. Employees on nonfarm payrolls by industry supersector, United States and the Virginia Beach Metropolitan Statistical Area,
not seasonally adjusted (in thousands)
AreaBack
data
Jun
2019
Apr
2020
May
2020
Jun
2020
Jun 2019 to
Jun 2020
Net
change
Percent
change

United States

Total nonfarm

Go to web page with historical data for series CEU0000000001
151,739130,317(p)133,410(p)138,513(p)-13,226(p)-8.7

Mining and logging

Go to web page with historical data for series CEU1000000001
746643(p)632(p)628(p)-118(p)-15.8

Construction

Go to web page with historical data for series CEU2000000001
7,6996,465(p)7,073(p)7,359(p)-340(p)-4.4

Manufacturing

Go to web page with historical data for series CEU3000000001
12,92211,432(p)11,708(p)12,169(p)-753(p)-5.8

Trade, transportation, and utilities

Go to web page with historical data for series CEU4000000001
27,69824,253(p)24,740(p)25,753(p)-1,945(p)-7.0

Information

Go to web page with historical data for series CEU5000000001
2,8742,607(p)2,561(p)2,586(p)-288(p)-10.0

Financial activities

Go to web page with historical data for series CEU5500000001
8,7838,523(p)8,552(p)8,650(p)-133(p)-1.5

Professional and business services

Go to web page with historical data for series CEU6000000001
21,42819,215(p)19,398(p)19,836(p)-1,592(p)-7.4

Education and health services

Go to web page with historical data for series CEU6500000001
23,93921,972(p)22,243(p)22,569(p)-1,370(p)-5.7

Leisure and hospitality

Go to web page with historical data for series CEU7000000001
17,2198,485(p)10,107(p)12,556(p)-4,663(p)-27.1

Other services

Go to web page with historical data for series CEU8000000001
5,9704,564(p)4,852(p)5,254(p)-716(p)-12.0

Government

Go to web page with historical data for series CEU9000000001
22,46122,158(p)21,544(p)21,153(p)-1,308(p)-5.8

Virginia Beach Metropolitan Statistical Area

Total nonfarm

Go to web page with historical data for series SMU51472600000000001
806.0711.2728.8(p)744.6(p)-61.4(p)-7.6

Mining, logging, and construction

Go to web page with historical data for series SMU51472601500000001
39.237.439.0(p)40.0(p)0.8(p)2.0

Manufacturing

Go to web page with historical data for series SMU51472603000000001
58.957.257.5(p)57.3(p)-1.6(p)-2.7

Trade, transportation, and utilities

Go to web page with historical data for series SMU51472604000000001
130.5112.7116.0(p)122.1(p)-8.4(p)-6.4

Information

Go to web page with historical data for series SMU51472605000000001
10.610.110.2(p)10.1(p)-0.5(p)-4.7

Financial activities

Go to web page with historical data for series SMU51472605500000001
39.938.538.4(p)38.2(p)-1.7(p)-4.3

Professional and business services

Go to web page with historical data for series SMU51472606000000001
115.8101.1103.2(p)103.6(p)-12.2(p)-10.5

Education and health services

Go to web page with historical data for series SMU51472606500000001
112.7105.8106.0(p)106.1(p)-6.6(p)-5.9

Leisure and hospitality

Go to web page with historical data for series SMU51472607000000001
99.258.270.7(p)80.3(p)-18.9(p)-19.1

Other services

Go to web page with historical data for series SMU51472608000000001
37.332.432.7(p)33.0(p)-4.3(p)-11.5

Government

Go to web page with historical data for series SMU51472609000000001
161.9157.8155.1(p)153.9(p)-8.0(p)-4.9

Footnotes
(p) Preliminary

SOURCE: Current Employment Statistics - National - State and Metropolitan Area

 

Last Modified Date: Thursday, July 30, 2020