The number of unemployed Virginians increased from 145,294 in March 2020 to 482,111 in April 2020 causing unemployment insurance claims to increase ten-fold within a month! In addition to the rising number of unemployed, Congress created several temporary programs to extend unemployment insurance benefits and expand them to many previously ineligible workers. Since those federal programs are administered by the states, the Virginia Employment Commission (VEC) was overwhelmed with claims. In the fall of 2020 VEC ranked lowest nationwide for timeliness in processing unemployment insurance claims that required further review. Citizens were understandably frustrated and upset with a process that has left some without benefits for many months. My office, along with that of other legislators, was deluged with e-mails and calls from those desperately seeking help. My legislative assistant has put in many extra hours helping constituents with their filings and follow up.
A review of unemployment rates throughout the Commonwealth reveals that the rise in unemployment was statewide with areas having a high rate of unemployment going into the pandemic getting hit the hardest, but more prosperous areas got hit as well. According to data on the VEC website, the rate of unemployment for March 2021, the last period for which numbers are available, ranged from a low of 3.2 percent in Madison County, an agricultural area in the center of the state, to a high of 12.9 percent in Petersburg City, one of the poorest areas in the state. On the low end of the unemployment numbers, Falls Church City was number 2 with a rate of 3.4 percent, and Fairfax County was 39th lowest at a rate of 4.6 percent. On the high end, Richmond was 7.1 percent, and the cities in the Hampton Roads region including Norfolk, Portsmouth, and Hopewell ranged from 7.1 percent to 10.0 percent, just below Petersburg City.
The COVID-19 relief checks were very helpful in slowing the slide of the economy toward recession levels of unemployment. The additional funding now being debated in the Congress for infrastructure and additional relief will shore up the economy further until the normal activity of the economy returns with the end of the pandemic. I will leave to economists to debate the amount of stimulus needed to restore the economy, but I can say that the federal money that has flowed into the state has prevented widespread reductions in staff and services that would have been necessary without that funding.
For those who have borne the brunt of the economic impact of the COVID-19 pandemic I can only offer my sympathy and compassion for what you have had to endure. I continue to be impressed with the resiliency of individuals and communities in times of challenge like these. The response of state government in this pandemic was unsatisfactory. True the bureaucracy was swamped with requests, but we should have been quicker to respond. True our existing technology was not up to the demand, but the technology that was to have been upgraded should have been done years ago. As Chairman of the Joint Legislative Audit Review Commission (JLARC), I promise that the results of the study that we are undertaking of VEC will address current concerns and provide recommendations to prevent this kind of situation from arising again!