The United States is officially out of the longest recession since World War II, but unemployment continues to present a challenge both nationally and locally.
The Business Cycle Dating Committee, a division of the National Bureau of Economic Research, announced Monday that business activity hit its lowest point in June 2009 since the recession officially began in December 2007 and that the figure has since moved out of the declining phase of the business cycle. The unemployment rate, however, has remained relatively stagnant at about 10 percent, according to the Bureau of Labor Statistics.
The Charlottesville unemployment rate, however, is faring significantly better than the national average. Chris Engel, assistant director of Charlottesville's Office of Economic Development, said the city's unemployment rate is between 5-6 percent, compared to the national average of 9.6 percent.
But Engel said this figure is still a five-year high for Charlottesville and that unemployment would remain high.
Moreover, much of the discrepancy between Charlottesville's unemployment rate and the national figure is because of the University's presence as a major employer in the area, said Diane Kuknyo, interim director of Charlottesville social services.
"I think that protects us in the beginning of recessionary periods," she said.
During the last 15 months, though, Kuknyo's office has experienced an increased in demand for its services, and not just from unemployed individuals, she said.
"They're employed people, they're working hard, but they're still qualifying for the benefits we offer," Kuknyo said, adding that her office has seen many newcomers who are seeking services for the first time.
Such changes could be explained by how the recession has affected private businesses employment in the Charlottesville area. Many employers have "hunkered down," Kuknyo said, saving money wherever they can.
Many Charlottesville businesses were hit hard by the recession. Retail, construction and manufacturing have suffered the most, Engel said.
Finding access to capital has been the biggest obstacle businesses in the area have had, Engel said.
During times of economic hardship, Engel said his office has worked with businesses owners and individuals looking to start businesses by connecting them to the right resources.
"We create an environment in which private sector businesses can grow ... in Charlottesville," he said. "All the issues involved in starting a business we try to smooth away."
The Office of Economic Development has examined business plans and has conducted one-on-one counseling for individuals seeking to obtain loans to start a business, Engel said. The office also has connected people to employers by hosting job fairs, which Engel said have been well attended and have featured employers that are "hiring in significant numbers."
The office also offers workshops to prepare people for interviews, giving them information about how to present themselves, dress and create r
Read More
Kappa Sigma’s FOA terminated after investigation reveals several hazing incidents
By Ford McCracken | 22 hours agoThe findings determined that Kappa Sigma engaged in physical, verbal and alcohol abuse and initially did not comply with the investigation.
Proposal aims to slash in half Student Council’s annual budget
By Vyshnavi Tatta | 22 hours agoMendoza Gonzalez also expressed concerns over depleting Student Council’s surplus funding as a contributing factor for the budget cuts across the board.
Undecided student voters weigh in a week out from the Harris-Trump debate
By Ford McCracken | 2 days agoThe Cavalier Daily assembled a focus group of undecided student voters to help take the temperature of young undecided voters.
