Stephanie Ferguson
Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce
Published
September 15, 2023
The state of Virginia has a favorable landscape for businesses and individuals, with a diverse economy, strong labor market recovery, and a robust small business ecosystem. Immigrants contribute meaningfully to the state's workforce and economy, while educational attainment, quality of life, and cost of living factors remain promising.
The Worker Shortage Across America
Explore the interactive map below to see the impact of the worker shortage crisis in each state.
The Chamber’s Worker Shortage Index ratio indicates the number of available workers for every job opening. A ratio above 1.0 indicates a surplus of available workers compared to job openings.
Virginia’s Labor Market
Prior to the pandemic, Virginia’s labor market relatively healthy. The state's unemployment rate was far lower than the national figure at 3.5%, and its labor force participation rate was significantly higher than the national rate of 63.4%. However, the state had a significant worker shortage with only 60 available workers for every 100 open jobs.
As of August 2023, Virginia’s current labor market had not yet fully recovered, but was displaying signs of improvement. Virginia’s labor force participation rate has fully rebounded, and is now one percentage point higher than it was in February 2020. The state also boasts a notably low unemployment rate.
However, the state’s worker shortage lags behind both its pre-pandemic levels and the nation’s current average. Virginia is grappling with a workforce shortage, evident by the fact that there are only 47 available workers for every 100 open job positions in the Old Dominion state.
Virginia’s Business Environment
Virginia has a robust business environment and was recently ranked as the second top state for business. The state’s business friendly environment, coupled with a talented workforce, and proximity to the nation’s Capital makes the state a suitable home for a diverse market of businesses.
Among the industries monitored by the Bureau of Labor Statistics, the professional and business services industries, as well as the government sector, employ the highest number of Virginians, while the construction sector employs the fewest. Virginia's employment landscape is a result of its proximity to Washington D.C., creating an ecosystem bustling with government contractors, consultants, and corporate headquarters.
Virginia is home to a thriving small business ecosystem, with 99.5% of all Virginia’s businesses falling into this category. Nearly half of Virginia's workforce are employed by small businesses. Within this dynamic landscape, women own 44.3% of small businesses, and a quarter of all Virginia small business are minority owned. Hispanics own 8.1% of Virginia small businesses and 9.5% are veteran owned.
Virginia’s Educational Attainment
Nearly 92% of Virginia’s population has obtained their high school diploma or its equivalent. 42.2% of the population have attained a bachelor's degree, while 18.6% have secured a graduate degree, both above the national averages.
Seven in 10 Virginian high school graduates stay in the state to attend college where the average in-state tuition is $13,655. Out-of-state tuition in Virginia is $35,831, significantly more expensive than the national average out-of-state tuition of $28,000. In total, 543,000 students are enrolled in a Virginia college for the 2022-2023 school year. These students supply a rich talent pool from which local employers can recruit talent.
Quality of Life
Virginia's median household income of $85,170, which surpasses the national average of approximately $70,000, ranking the state 14th among all states. Virginia's tax rate, ranging from 2% to 5.75%, places it in the lower tiers compared to other state tax rates.
One third of Virginia workers work remote at least one day a week. For those commuting into an office, the average commute time is 28.6 minutes. The Council for Community and Economic Research measures states’ costs of living compared to the national average of 100. Vermont’s cost of living index falls at 103.1 meaning the state is slightly less affordable in comparison to the national cost of living. The median rent settles at $1,257, while the median home cost is $376,931, slightly higher than the national average. Around 67% of the population owned their housing unit in 2021. The state experienced a slow growth rate of .55% from 2020 to 2022.
Immigration
In the U.S., immigrants tend to be of working age in comparison to native-born individuals. As workers, these immigrants are also contributing to support programs like Medicare and Social Security.
Looking at Virginia in particular, immigrants comprise 12.8% of the state's population, totaling more than one million individuals. Their collective spending power amounts to $34.3 billion, while their tax contributions reach $12.8 billion.
Stand Up for Free Enterprise
Join us in standing up for American free enterprise.
Your voice is essential, and your participation is critical.
Explore More States
About the authors
Makinizi Hoover
Makinizi Hoover is the Senior Manager of Strategic Advocacy at the U.S. Chamber of Commerce. Her work includes the development and project management of comprehensive data centers that serve as a valuable resource for policymakers, businesses, and the public.
Stephanie Ferguson
Stephanie Ferguson is the Director of Global Employment Policy & Special Initiatives. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.
Isabella Lucy
Isabella has created stunning visualizations tackling pressing issues like the worker shortage, the benefits of hiring veterans, the lifespan of small businesses, and the future of work.
