Virginia workers got a gloomy forecast this week as concerns continue about the ongoing impact of the Trump administration’s austerity measures.
The University of Virginia’s Weldon Cooper Center for Public Service expects more job loss this upcoming year for the commonwealth. The center expects Virginia’s July unemployment rate of 3.6% to rise to 4.2% by the end of 2025 and keep rising into 2026 to 4.6% before edging back down to 3.9% in 2027.
Weldon Cooper expects job losses for more government workers, thousands of whom have already been put out of work.
Many policy watchers are waiting to see what happens after September. That’s when many federal workers who are getting severance checks are expected to stop getting those checks. The change could lead to even higher unemployment, but predictions are tough to make in what one economist called “a chaotic situation.
Things are bad for many Virginians, but as Levi Goren (they/them) of The Commonwealth Institute of Fiscal Analysis, reminded me: things don’t have to be this way.
In my interview with them, Goren mentioned that better public investments and policies for workers’ rights, childcare, education, and transportation would help bolster Virginia’s economy and workforce against challenges that arise.
Goren said to be on the lookout for legislation in this upcoming General Assembly session to address the affordability crisis that plagues many Virginians. They expect legislation that will raise the minimum wage and strengthen collective bargaining rights.
“The status quo is not good enough for a lot of Virginia families,” Goren said. “There’s a lot of folks struggling to make ends meet.”
