NORFOLK, Va. — It appears that unemployment claims are declining in the Hampton Roads region, according to researchers at Old Dominion University.
ODU’s Dragas Center for Economic Analysis and Policy Projects analyzed some data from the Virginia Employment Commission and found that the number of claims had waned going into the week of April 18.
For the week ending April 18, 16,561 individuals filed initial claims for unemployment insurance, which is a decline of 4,078 claims from the prior week.
More than 100,000 people in the region filed initial claims in the last five weeks. That's nearly one in nine workers.
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Studies done by ODU show that the unemployment rate in the area likely exceeded 7% at the end of March and may approach 15% by the end of April.
The number of continued claims rose to more than 58,000 by the end of April 18. Continued claims refers to the number of people already receiving unemployment benefits. Some of these individuals may have first filed jobless claims before the COVID-19 outbreak.
Researchers predict the number of continued claims will rise in the coming weeks as the VEC continues to process applications.
“It appears that the initial wave of unemployment has passed, but we will continue to see layoffs as long as social distancing measures remain in effect as the regional economy searches for a new normal,” said Robert McNab, director of the ODU Dragas Center. “We project a rebound in employment in the summer, but the fall and winter are more uncertain at this time.”
Initial unemployment claims declined from the previous week in all of the cities and counties in Hampton Roads. Claims in Virginia Beach sank from 5,886 to 4,724 while claims in Norfolk decreased from 2,939 to 2,378. In James City County, claims declined to 995, which is a decrease of 213 from the prior week.