Local Workforce Development Areas Industry Bulletin

Local Workforce Development Areas Industry Bulletin 3rd Quarter - 2016 ECONOMIC INFORMATION & ANALYTICS Virginia Employment Commission A Publication of the Virginia Employment Commission

Local Workforce Development Areas (LWDA) Northern Region Bay Consortium (LWDA XIII) Combined Projections Area (LWDA V) Piedmont Workforce Network (LWDA VI) Shenandoah Valley (LWDA IV) Southwestern Region New River/Mt. Rogers (LWDA II) Region 2000/Central Virginia (LWDA VII) Southwestern Virginia (LWDA I) West Piedmont (LWDA XVII) Western Virginia (LWDA III) Southeastern Region Capital Region Workforce Partnership (LWDA IX) Crater Area (LWDA XV) Greater Peninsula (LWDA XIV) Hampton Roads (LWDA XVI) South Central (LWDA VIII) This workforce product was funded by a grant awarded by the U.S. Department of Labor s Employment and Training Administration. The product was created by the recipient and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This product is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner. The Virginia Employment Commission is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities. 3rd Quarter 2016 ii

Economic Indicators for Local Workforce Development Areas - 3rd Quarter 2016 A Brief Explanation of LWDA-Level Economic Data By Paul Daniels - paul.daniels@vec.virginia.gov Unlike state-level and national data, economic information at the Local Workforce Development Area (LWDA) sub-state level generally lags by 4-6 months, or two quarters. This is because only Quarterly Census of Employment and Wages (QCEW) data is broken down to this level. While the Current Employment Statistics estimates are much more current, it is widely believed that QCEW is more encompassing and accurate as it is a census of all employment covered by Unemployment Insurance (UI) programs (approximately 97 percent of all wage and salary civilian employment). While more current information is often preferred, this concern should be eased by the robustness of QCEW data. Fortunately data from the Local Area Unemployment Statistics (LAUS) Program is available on a more current basis at the LWDA level. Unless noted otherwise, unemployment statistics will be reported for the fourth quarter of 2016. When using QCEW data, there are two main issues of which to be aware. 1 The first is that this data is largely a snapshot in time and is not a time series. This coupled with the fact that QCEW data is not seasonally adjusted means that it is not appropriate per se to analyze over the quarter changes. Instead, these reports focus on over-the-year changes. Secondly, changes to Unclassified Establishments are largely left out of this analysis and the tables that follow unless the information provides a better understanding of local economies. This is despite the fact that at any given time many of the largest industry changes may occur in the Unclassified Establishments category. The reason for this is twofold. First, unclassified establishments are a very fluid category. Often businesses are listed as unclassified due to some reporting error. Over time, staff is able to note and correct such discrepancies, and the number of unclassified establishments will drastically decrease. Further, this category contains very different types of businesses and is therefore extremely difficult to analyze without knowing exactly which businesses are in the category. Secondly, Unclassified Establishments account for less than 0.5 percent of establishments, employment, and wages at the state level, thus rendering its impact relatively miniscule. To be sure, this category can give us useful information in terms of total establishments added or subtracted, as well as a deeper understanding of employment and wage trends. When appropriate, these issues will be noted. A Note on Levels versus Magnitude Change This report includes a mixture of both level changes and the magnitude of change. 2 Both numbers may be of interest, and more importantly, they can paint a different picture of state and sub-state economies. For instance, an industry in a given LWDA may see a small gain of three establishments in a quarter. If that industry only had three establishments the previous quarter, this would be an increase of 100 percent. In this example, looking at magnitude and ignoring levels would lead one to believe that this industry saw unheard of growth. Conversely, an industry such as food services may see a much more impressive gain of 100 establishments, which may only result in a four percent magnitude increase due to the size of the industry. In these examples, the difference between magnitude and level changes lead to very different conclusions. Is it more important for the state s economy and policy-making to have a small industry double in size, or for a large industry to continue adding or subtracting large numbers? Finally, there may be instances in which only one type of analysis can give us an answer we are seeking. For example, looking at percent changes, we see that when 1 For a more complete discussion of how QCEW data is collected and measured, please refer to the Bureau of Labor Statistic s website (https:// www.bls.gov/cew/cewfaq.htm), or contact the author of this report. 2 Tables are offered at the end of this report displaying the greatest magnitude and level changes in each region. 1 3rd Quarter 2016

the number of establishments and average employment decreases, they do so at a much lower rate than they increase. This is cause for celebration as it indicates that industry growth may be occurring much quicker than any contractions. In this report, primary importance is placed on level changes due to the ease of interpretation. However, magnitude changes are discussed as well where appropriate. Summary 3 In the third quarter of 2016, Virginia s economy performed well across nearly every measure. Unemployment rates continued to decline to four percent for the quarter, with most recent data (December 2016) showing further improvement to 3.8 percent. While the size of the labor force has increased, the number of employed persons has increased at a quicker pace (0.4 percent versus 0.04 percent for labor force) in both the third and fourth quarters of 2016. In addressing the overall state economy and how LWDAs compare, it is first helpful to view impacts at the industry level. Looking at the number of establishments, the top four industries are and Social Assistance; Professional, Scientific and Technical ; Other (except Public Administration); and Trade, with 15.7, 15.5, 10.2, and 10 percent of the total number of establishments in the state, respectively. For average employment, the top industries again are ; Trade; and Professional, Scientific and Technical, with 12.7, 11.2, and 11 percent of total employment, respectively. Furthermore, Professional, Scientific and Technical accounts for 19.7 percent of total wages in the state, with and Social Assistance coming in at a distant second place, with 11.6 percent. Interestingly, when looking at average weekly wages, the only one of the aforementioned industries in the top three is Professional, Scientific and Technical, with an average weekly wage of $1,902 (approximately $98,000 annually). The industry information listed above speaks to the give-and-take of Virginia s economy. For instance, and Social Assistance boasts the highest average employment, number of establishments, and contributes the second highest amount of total wages in the state. Despite this, the average weekly wage for the industry is $969 (approximately $50,000 annually). While the industry as a whole contributes significantly to Virginia s economy, on average, workers in the industry take home the fourteenth highest salary, out of 21 industries. The impact of this can be seen in the tradeoff facing persons trying to determine in which industry to pursue employment. The fastest growing, largest, and most lucrative industry may not be the same. As a result, it is important for prospective employees and those in workforce services to consider multiple factors before choosing a career path. Turning attention to the Local Workforce Development Areas, we similarly find that there are three regions that appear to have the greatest impact on the Commonwealth. First, Northern Virginia accounts for 24 percent of establishments, 24.7 percent of employment, and 31.9 percent of total wages. The Capital region comes in second place with 12.9 percent of state establishments, 14.6 percent of employment, and 13.7 percent of total wages. Finally, Hampton Roads accounts for 11.1 percent of total establishments in the state, 13.4 percent of employment, and 11.2 percent of total wages. Unsurprisingly these regions also have the greatest impact on three of the top four industries mentioned previously. This largely follows assumptions that are often made, though the fact that three regions account for more than half of all state wages is particularly striking. Regional Breakdown LWDA I Southwestern Virginia: With a labor force of just over 70,000, this region has one of the smallest economies in the state. Unfortunately, recent trends show a continuing decline across most measures. Although unemployment rates continue to fall both over the quarter and over the year, the number of employed persons is also declining. This points to a shrinking labor force (down 3.8 percent from last year, as of December 2016) that has been on a slow but steady decline for the past two years. In fact, the Southwestern region saw the largest magnitude decrease in both the size of its labor force and the number of employed 3 Tables offered at the conclusion of this report covering the largest changes (positive and negative) in each region, as well as a breakdown of regional contributions to state totals. 3rd Quarter 2016 2

persons. Despite these negative trends, wages in the region have gone up overall with the largest increase seen in and Enterprises and only the industry reporting a decline in wages. The number of establishments is down 2.4 percent from last year, with average employment and total wages falling by 5 percent and 1.7 percent, respectively. As is suspected, the largest decline in both employment and total wages was in the and Oil and Gas Extraction industry, which saw average employment fall by 26 percent, and total wages decrease by over 18 percent. Finally, despite its decline in establishments and wages, the and Social Assistance industry is the largest in the region, responsible for more than a quarter of all establishments 16.7 percent of average employment, and 17.8 percent of total wages. Although the overall story for the Southwestern region currently points to a negative trend, the uptick in average wages as well as increases in unclassified establishments may point to a leveling off or at least a slower decline in the future. However, more time is needed to verify such conclusions. LWDA II New River/Mt. Rogers: Though its economic impact on the state is larger than LWDA I, the New River/ Mt. Rogers region has also seen a decline. The number of establishments and average employment are down in the region, driven in part by the large declines in Trade and. However, wages have gone up over the year, with and Enterprises as well as Fishing and Hunting seeing total wages increase by more than 50 percent. and Social Assistance had the greatest level increase in total wages, growing by more than $11 million. The only industry that saw average wages decrease was and Oil and Gas Extraction. Trade s drop in the number of establishments was the largest in the region (32 or 2.5 percent), with the largest drop in average employment coming from (1,201 or 4.5 percent). Also of consequence is the local labor market. Despite its decrease from the third quarter of 2016, fourth quarter 2016 unemployment rates are still above where they were last year. With a labor force that has remained relatively stable, the conclusion drawn is that even though people may move into various industries as they rise and fall, currently people are losing work faster than they are finding new positions. LWDA III Western Virginia: Overall, the region has shown improvement over last year. Looking at QCEW data, the only overall decline was the number of establishments, which dropped by less than 0.5 percent. Average employment is up slightly, and both total and average wages grew in the region by more than 4 percent. As is the case in many regions, Trade saw a decline in the number of establishments from last year, with Professional, Scientific and Technical seeing a similar loss. ; Accommodation and Food ; and and Social Assistance saw the largest increases in average employment, with also seeing the largest increase in total wages for the region. At the individual level, the industry saw a 12 percent increase in average weekly wages, growing by $125 or $6,500 annually. Only Public Administration saw average wages fall. As with the state, Western Virginia s labor force remains stable, with current unemployment rates at 4 percent, the same as third quarter and slightly above fourth quarter 2015 levels of 3.9 percent. LWDA IV Shenandoah Valley: In the Shenandoah Valley, unemployment rates have been steady at 3.9 percent for the past two quarters and down over the year. The number of employed persons remains above last year s levels, though down a negligible amount from third quarter 2016. The last two quarters of 2016 saw the size of the labor force remain constant, while currently remaining above the same period last year. Overall the third quarter of 2016 saw all industries improve over the year, with only a handful of industries seeing negligible declines in the number of establishments and average employment. The largest growth in establishments was again in and Social Assistance, as is evident when looking at the state as a whole. Total wages rose 6.7 percent from last year, with the greatest increase being more than $27 million in the manufacturing industry. and Enterprises increased average weekly wages by $87 since last year. No industries saw a decrease in either total or average weekly wages from last year. LWDA VI Piedmont Workforce Network: The region is up overall from last year. The number of establishments and average employment both increased slightly, with an over-the-year increase of over 4 percent in total and average weekly wages. Despite this upward trend, the largest changes in the region were negative. 3 3rd Quarter 2016

Professional, Scientific and Technical decreased the number of establishments by 33, while saw average employment decrease by more than 600. The region s increase in wages appears to be driven by large gains in and Social Assistance; ; and Professional, Scientific and Technical. These gains helped to offset the large losses in the industry, which saw total and average weekly wages fall by over 34 percent since last year. Labor force statistics point to a strong local economy, with a growing labor force and an unemployment rate of 3.4 percent that remains below the state average. LWDA VII Region 2000/Central VA: Although average employment for the region is currently down 1.2 percent from last year, Central Virginia s local industries are showing signs that their growth is greater than any contractions. and Social Assistance added 55 establishments, while and had the largest increases in wages. The decline in employment was influenced primarily by large decreases in Administrative, Support and Waste Management, and and Enterprises. The unemployment rate is currently very close to last year s rate at 4.4 percent, despite a rather tumultuous year. This may be a sign of a more systemic problem, as the size of the labor force continues to shrink from last year. LWDA VIII South Central: The South Central region saw employment decrease from last year, with average employment down 117 (0.2 percent) across all industries, although the labor force has remained relatively constant. While Professional, Scientific and Technical ; ; and Administrative, Support and Waste Management saw increases in employment, most industries saw either a loss, or negligible change. As is common across most regions, the largest gain in establishments was in and Social Assistance, though the industry also suffered a loss of employment. While the employment situation is of concern, wages in the region tell a different story. Total wages are up 4.8 percent from last year, and weekly wages are up 5 percent. In both categories, the largest changes from last year were the gains in Professional, Scientific and Technical. While this is encouraging, the region accounts for less than 1 percent of wages in the state, leaving room for continued growth. LWDA IX Capital Region Workforce Partnership: The Capital region boasts the second highest contributions to state totals in number of establishments, employment, and wages. This should come as no surprise as the region has seen significant increases in average employment, the number of establishments, and wages. Administrative, Support and Waste Management saw the largest increases in establishments and employment, with the largest and most significant changes in wages coming from and Social Assistance; Fishing and Hunting; and. Overall, total wages for the region are up 6.2 percent, 3rd Quarter 2016 4

with average weekly wages up more than 5 percent. No industries saw a decrease in either total or average weekly wages from last year. Even more encouraging is that the region saw the largest gains in number of employed and size of the labor force of any other LWDA, and an unemployment rate of 3.9 percent, slightly below the state average. This key takeaway from the region is not only its continued growth, but the fact that the local industries appear capable of handling and perhaps even encouraging a growing labor force. These are all promising signs for a strong economy. LWDA XI Northern Virginia: As is often assumed, Northern Virginia holds the largest share of state establishments, employment, and wages, as well as the largest contributions to the Commonwealth s top three industries. Moreover, the region has the largest labor force, and although the number of unemployed persons has increased slightly from last year, the unemployment is currently 3.3 percent, well below the state average. While the overall story is one of growth, the largest change in the number of establishments was a decrease of 191 (1.2 percent) in Professional, Scientific and Technical. While most other industries saw relatively minor gains, there was an increase of 450 unclassified establishments. For reasons mentioned earlier in this report, it is difficult to draw many inferences from this gain. However, it does point to an overall significant increase for the region, which over time will be better understood. Once again the largest gain in employment was in the and Social Assistance industry. Total wages increased the most in Professional, Scientific and Technical, which also has the highest share of the region s wages. Interestingly, average weekly wages grew the most in the industry ($202, $10,000 annually), while other areas saw wages decline in the industry. LWDA XII Alexandria/Arlington: Most notably, the Alexandria/Arlington region saw the largest decrease in unemployment rate from last year and currently has the lowest rate of any other region---2.6 percent at the end of the fourth quarter of 2016. This is particularly impressive as the region saw establishments fall by 1.5 percent from last year, with only three industries reporting gains in this category. Furthermore, wages are up from last year across all industries, largely driven by the increase in Professional, Scientific and Technical. In fact the only industry that saw an overall decline in wages was Finance and Insurance which saw average wages fall by an average of almost $15,000 annually. LWDA XIII Bay Consortium: The Bay Consortium is up overall from last year. The number of establishments increased the most in and Social Assistance, despite the relatively large decline in number in the industry. Turning to average employment, Transportation and Warehousing grew the most, adding an average of 1,065 employees, while the industry with the highest employment Trade decreased by 2 percent. Finally, Public Administration saw the largest increase in total wages, growing by over $21 million, while the average weekly wages grew the most in the industry ($196 per week). The region s unemployment rate in December of 2016 was 4.1percent, down from last year s rate of 4.3 percent. LWDA XIV Greater Peninsula: As the size of its labor force declines slightly from last year, the Greater Peninsula region s fourth quarter 2016 unemployment rate is up slightly. At 4.7 percent, the unemployment rate is higher than the state. This is likely in large part a result of the large decline in. Despite having a relatively small number of establishments, the manufacturing industry is responsible for 12.9 percent of the region s employment and 20 percent of total wages. The industry had the largest decline in average employment, with a loss of 1,870 (6.1 percent), and a decrease of 2.2 percent in total wages. However, wages in the region are up overall, with the largest changes occurring in and Social Assistance, and and Enterprises. Overall, the region s story is a complex one, with employment decreasing, but wages generally increasing. LWDA XV Crater Area: Relatively speaking, the Crater Area has a smaller share of the state s economy, with less than two percent of the state s wages and establishments. It is also home to one of the Commonwealth s smallest labor forces, although it has grown slightly from last year. As of December 2016, the unemployment rate for the region was 5.3 percent, an improvement both over the year and from the previous quarter. Despite the relatively high unemployment rate, the region s industries as a whole are performing well. and Social Assistance continues to grow both the number of establishments and total wages, 5 3rd Quarter 2016

while the largest decline relative to its size was the and Oil and Gas Extraction industry which saw employment and total wages both decline by more than 20 percent over the year. The region s largest industries: and Social Assistance; ; and Public Administration continue to grow across most measures, likely pulling the region s performance into the positive. LWDA XVI Hampton Roads: Hampton Roads is the third most influential region in the state, in terms of establishments, employment, and wages. All unemployment statistics are down slightly from the previous year, with the fourth quarter of 2016 reporting unemployment just higher than the state at 4.4 percent. Net growth across all industries in the region was positive from the previous year. While the largest changes in establishments and average employment were negative, the industries responsible are large enough that the impact was muted when viewed at the state level. For example, Administrative, Support and Waste Management saw average employment decrease by 2,106 in the third quarter of 2016, a loss of 6.4 percent over the year. However, the region as a whole grew employment slightly, thanks in large part to the yet undefined growth of establishments and employment in the Unclassified Establishments category. As with other regions, wages in Hampton Roads are up over the year, with the largest increases occurring in Mining, Quarrying, and Oil and Gas Extraction. LWDA XVII West Piedmont: Overall, industries in the West Piedmont LWDA performed well in the third quarter of 2016. While Administrative, Support and Waste Management saw average employment decline by 482, Professional, Scientific and Technical as well as grew by similar amounts, leading to a net gain. Total wages increased, as only three industries saw a decrease in this category of any significance, the largest of which was in Arts, Entertainment and. Once again, utilities saw the biggest increase in average weekly wages, growing by $109/week over the year. While the region as a whole is performing well, December 2016 saw unemployment at 5.1 percent, keeping it above the state average. That being said, unemployment is down 0.3 percent from last year. 3rd Quarter 2016 6

Tables and Charts 4, 5 Tables 1 through 4 provide a snapshot of all current QCEW measures at the regional net level, used in the analysis above. These tables also display each region s year-over-year (YoY) change in both level and magnitude. Table 5 presents each region s share of state totals for wages, establishments, and employment across all industries. Tables 6 through 10 display which industry had the greatest year-over-year change broken down by LWDA region. Table 6 and 7 provide the greatest decreases in each region, while Tables 8 and 9 represent the greatest increases. Finally, Table 10 is included to provide a list of the largest industries in each region, as a share of region totals. As with the analysis above, the Unclassified Establishment category is left out of these tables, due to the ambiguity of the data. 6 Table 1 Number of Establishments, 3 rd Quarter 2016 (All Industries) LWDA Region Current Level YoY Change (%) I Southwestern Virginia 4,811-120 (2%) II New River/Mt. Rogers 9,496-33 (<1%) III Western Virginia 9,699-4 (<1%) IV Shenandoah Valley 14,417 3,387 (1%) VI Piedmont Workforce Network 13,648 48 (<1%) VII Region 2000/Central VA 7,236 51 (1%) VIII South Central 5,313 98 (2%) IX Capital Region Workforce Partnership 33,457 510 (2%) XI Northern Virginia 62,136 183 (<1%) XII Alexandria/Arlington 15,666-241 (-2%) XIII Bay Consortium 12,954 34 (<1%) XIV Greater Peninsula 11,764 38 (<1%) XV Crater Area 4,033 72 (2%) XVI Hampton Roads 28,619 26 (<1%) XVII West Piedmont 5,996 51 (1%) State 258,780 3,678 (1%) 4 All figures provided by the Virginia Employment Commission, Division of Economics & Analytics, Quarterly Census of Employment and Wages 5 State totals may not match hand calculated totals, as they include information for establishments that may be suppressed at the sub-state level. 6 In every LWDA region, unclassified establishments saw the largest magnitude changes in many QCEW measurements. This is largely due to the size of the category, which should theoretically be minimal. 7 3rd Quarter 2016

Table 2 Average Employment Levels, 3 rd Quarter 2016 (All Industries) LWDA Region Current Level YoY Change I Southwestern Virginia 54,712-2881 (-5%) II New River/Mt. Rogers 140,205-593 (<1%) III Western Virginia 158,408 188(<1%) IV Shenandoah Valley 218,116 3,387 (2%) VI Piedmont Workforce Network 165,554 646 (<1%) VII Region 2000/Central VA 98,129-1,187 (-1%) VIII South Central 54,827-117 (<1%) IX Capital Region Workforce Partnership 555,481 6,211(1%) XI Northern Virginia 937,965 13,509 (2%) XII Alexandria/Arlington 269,046-11 (<1%) XIII Bay Consortium 165,689 1,925 (1%) XIV Greater Peninsula 225,387-1,584 (-1%) XV Crater Area 68,834 75 (<1%) XVI Hampton Roads 508,467 2,291 (1%) XVII West Piedmont 68,806 432 (1%) State 3,792,014 35,415 (1%) Table 3 Total Wages, 3 rd Quarter 2016 (All Industries, in Thousands of U.S. Dollars) LWDA Region Current Level YoY Change I Southwestern Virginia $487,661 -$8,562(-2%) II New River/Mt. Rogers $1,356,827 $63,698 (5%) III Western Virginia $1,705,368 $70,461 (4%) IV Shenandoah Valley $2,225,976 $140,242 (7%) VI Piedmont Workforce Network $2,055,378 $89,468 (5%) VII Region 2000/Central VA $1,001,985 $27,673 (3%) VIII South Central $476,333 $21,763 (5%) IX Capital Region Workforce Partnership $7,203,401 $417,536 (6%) XI Northern Virginia $16,714,937 $1,084,681 (7%) XII Alexandria/Arlington $5,509,334 $240,942 (5%) XIII Bay Consortium $1,837,311 $101,062 (6%) XIV Greater Peninsula $2,594,702 $89,205 (4%) XV Crater Area $740,913 $38,526 (6%) XVI Hampton Roads $2,849,609 $224365 (4%) XVII West Piedmont $280,167 27,546 (5%) State $52,406,330 $2,966,987 (6%) 3rd Quarter 2016 8

Table 4 Average Weekly Wage, 3 rd Quarter 2016 (All Industries, U.S. Dollars) LWDA Region Current Level YoY Change I Southwestern Virginia $686 $23 (4%) II New River/Mt. Rogers $744 $38 (5%) III Western Virginia $828 $33 (4%) IV Shenandoah Valley $788 $38 (5%) VI Piedmont Workforce Network $955 $38 (4%) VII Region 2000/Central VA $785 $30 (4%) VIII South Central $668 $32 (5%) IX Capital Region Workforce Partnership $998 $48 (5%) XI Northern Virginia $1,371 $70 (5%) XII Alexandria/Arlington $1,575 $69 (5%) XIII Bay Consortium $853 $37 (5%) XIV Greater Peninsula $886 $37 (4%) XV Crater Area $828 $42 (5%) XVI Hampton Roads $885 $30 (4%) XVII West Piedmont $649 $27 (4%) State $1,063 $51 (5%) Table 5 Share of State Totals, 3 rd Quarter 2016 LWDA Region Number of Establishments Average Employment Total Wage I Southwestern Virginia 1.9% 1.4% 0.9% II New River/Mt. Rogers 3.7% 3.7% 2.6% III Western Virginia 3.7% 4.2% 3.3% IV Shenandoah Valley 5.6% 5.7% 4.2% VI Piedmont Workforce Network 5.3% 4.4% 3.9% VII Region 2000/Central VA 2.8% 2.6% 1.9% VIII South Central 2.1% 1.4% 0.9% IX Capital Region Workforce Partnership 12.9% 14.6% 13.7% XI Northern Virginia 24% 24.7% 31.9% XII Alexandria/Arlington 6.1% 7.1% 10.5% XIII Bay Consortium 5% 4.4% 3.5% XIV Greater Peninsula 4.5% 5.9% 5% XV Crater Area 1.6% 1.8% 1.4% XVI Hampton Roads 11.1% 13.4% 11.2% XVII West Piedmont 2.3% 1.8% 1.1% 9 3rd Quarter 2016

Table 6 Industries with the Largest Level Decreases from Last Year LWDA Region Number of Establishments Average Employment Total Wages (USD, thousands) Average Weekly Wage (USD) I Southwestern Virginia (-22) (-1,100) (-$12,569) (-$108) II New River/Mt. Rogers (-32) (-1,201) (-$1,426) (-$87) III Western Virginia (-49) (-334) (-$1,348) Public Admin (-$7) IV Shenandoah Valley (-15) (-120) N/A N/A VI Piedmont Workforce Network (-33) (-666) (-$38,038) (-$926) VII Region 2000/Central VA (-29) (-760) ($2,084) (-$24) VIII South Central (-11) (-217) Accommodation, Food (-$220) (-$15) IX Capital Region Workforce Partnership (-101) (-496) N/A N/A XI Northern Virginia (-191) (-1,804) (-$6,712) (-$37) XII Alexandria/Arlington (-167) (-389) ($19,156) (-$283) XIII Bay Consortium (-27) Wholesale Trade (-500) ($5,020) (-$55) XIV Greater Peninsula (-44) (-1,870) ($11,380) (-$25) XV Crater Area (-10) (-342) (-$3,078) (-$72) XVI Hampton Roads (-120) (-2,106) Real Estate (-$4,060) Real Estate (-$10) XVII West Piedmont (-27) (-482) (-$971) (-$90) State (-322) (-1,478) (-$11,494) Arts, Entertainment, (-$9) 3rd Quarter 2016 10

Table 7 Industries with the Largest Magnitude Decreases from Last year LWDA Region Number of Establishments Average Employment Total Wages Average Weekly Wage I Southwestern Virginia (-20%) (-26%) (-20%) (-13%) II New River/Mt. Rogers Wholesale Trade (-5%) (-22%) (-28%) (-8%) III Western Virginia (-8%) (-10%) (-2%) Public Administration (<1%) IV Shenandoah Valley (-6%) (-2%) N/A N/A VI Piedmont Workforce Network (-6%) (-6%) (-34%) (-34%) VII Region 2000/Central VA (-5%) (-14%) (-12%) (-3%) VIII South Central (-9%) (-8%) (-5%) (-4%) IX Capital Region Workforce Partnership (-20%) (-8%) N/A N/A XI Northern Virginia (-7%) (-6%) (-4%) (-6%) XII Alexandria/Arlington Transportation and Warehousing (-8%)* (-8%) (-9%) (-12%) XIII Bay Consortium (-11%) Wholesale Trade (-11%) Wholesale Trade (-6%) (-5%) XIV Greater Peninsula XV Crater Area XVI Hampton Roads XVII West Piedmont State Educational (-6%)* (-4.8%) (-3.5%) * (-12%) (-3%) Real Estate (-12%) (-17%) (-6%) (-9%) (-17%) (-7%) (-20%) Real Estate (-4%) (-14%) (-11%) (-6%) (-8%) Real Estate (-1%) (-13%) Arts, Entertainment, (-2%) *In LWDA XII, the Oil and Gas Extraction industry decreased from two to one establishment, leading to a deceivingly large (50%) decrease. in LWDA XIV, the Oil and Gas Extraction industry decreased from five to three establishments, and in LWDA XVII, the Oil and Gas Extraction industry increased from 3 to 4. Due to the difficulty in properly interpreting such a high magnitude change associated with the loss of just one industry, the Oil and Gas Extraction industry was removed from these areas. 11 3rd Quarter 2016

Table 8 Industries with the Largest Level Increases from Last Year LWDA Region Number of Establishments Average Employment Total Wages (Thousands of Dollars) Average Weekly Wage I Southwestern Virginia Other (12) (127) ($3,896) ($224) II New River/Mt. Rogers Other (20) (557) ($11,516) ($931) III Western Virginia (38) (621) ($19,129) ($125) IV Shenandoah Valley (59) Educational (677) ($27,416) ($87) VI Piedmont Workforce Network (19) Accommodation, Food (449) ($50,035) ($251) VII Region 2000/Central VA (55) (405) ($17,239) ($140) VIII South Central (82) (333) ($3,733) ($170) IX Capital Region Workforce Partnership (155) (1,460) ($60,952) ($149) XI Northern Virginia (71) (3,334) ($285,004) ($202) XII Alexandria/Arlington (24) (951) ($57,945) ($271) XIII Bay Consortium (33) Transportation and Warehousing (1,065) Public Admin. ($21,342) ($196) XIV Greater Peninsula (52) Transportation and Warehousing (431) ($17,485) ($179) XV Crater Area (48) Educational (459) ($9,199) ($208) XVI Hampton Roads (74) (1,226) ($685,152) ($174) XVII West Piedmont Other (57) (448) ($7,838) ($109) State (611) Prof., Scientific, Tech. (8,741) Prof., Scientific, Tech. ($685,152) ($145) 3rd Quarter 2016 12

Table 9 Industries with the Largest Magnitude Increases from Last Year LWDA Region Number of Establishments Average Employment Total Wages Average Weekly Wage I Southwestern Virginia Other (4%) (6%) (21%) (22%) II New River/Mt. Rogers (8%) (36%) (59%) (72%) III Western Virginia (13%) (7%) (15%) (12%) IV Shenandoah Valley Wholesale Trade (2%) (6%) (13%) Accommodation, Food (9%) VI Piedmont Workforce Network (3%) (5%) VII Region 2000/Central VA Real Estate (8%) (11%) (15%) VIII South Central (13%) (32%) IX Capital Region Workforce Partnership (8%) (23%) (30%) (11%) XI Northern Virginia (7%) (7%) (17%) (11%) XII Alexandria/Arlington XIII Bay Consortium XIV Greater Peninsula XV Crater Area XVI Hampton Roads XVII West Piedmont State (3%) (4%) (4%) (12%) (5%) Other * (4%) Wholesale Trade (9%) (20%) Transportation and Warehousing (8%) Educational (10%) (16%) (26%) Arts, Entertainment, (3%) Wholesale Trade (17%) Transportation and Warehousing (42%) (17%) (13%) (32%) (15%) (10%) Transportation and Warehousing (12%) (30%) Real Estate (11%) (10%) *In LWDA XVII, the Oil and Gas Extraction industry increased from 3 to 4, leading to a deceivingly large (33%) increase. Due to the difficulty in properly interpreting such a high magnitude change associated with the addition of just one industry, the Oil and Gas Extraction industry was removed from this area. 13 3rd Quarter 2016

Table 10 Largest Industries in each LWDA Region LWDA Region Number of Establishments Average Employment Total Wage Highest Average Weekly Wage I Southwestern Virginia (27%) (17%) ($1,443) II New River/Mt. Rogers (24%) (22%) ($2,225) III Western Virginia (16%) (22%) ($1,339) IV Shenandoah Valley (20%) (15%) (19%) ($1,344) VI Piedmont Workforce Network (20%) (16%) ($1,902) VII Region 2000/Central VA (22%) (17%) (22%) ($1,278) VIII South Central (29%) ($1,807) IX Capital Region Workforce Partnership (15%) ($2,067) XI Northern Virginia (26%) (20%) (32%) ($2,576) XII Alexandria/Arlington (25%) (22%) (30%) ($2,642) XIII Bay Consortium (19%) Public Admin. (20%) Public Admin. ($1,655) XIV Greater Peninsula (20%) ($1,641) XV Crater Area (20%) (17%) ($1,820) XVI Hampton Roads (16%) (15%) ($1,505) XVII West Piedmont (41%) (16%) ($1,215) State (16%) (13%) (20%) ($2,008) 3rd Quarter 2016 14