Economic Challenges in the Greater Charlottesville Region

DISCUSSION TOPICS Is underemployment really an issue? Is Charlottesville immune from recession? Are we losing our middle class? What’s behind the chronic unemployment and poverty in the African-American community?

ISSUE 1 Is Underemployment Really an Issue?

Many Residents Leave the Region for Work… WIA 6 Commuting to Work (2000 Census) NOVA RIC FB VAL (~ 22,200) (~ 2,800) (~ 4,700) (~ 1,900) LYN (~ 1,100) ~ 32,000 residents work outside of the region. Greater Charlottesville is a net importer ~10,500 go out, ~12,000 come in Who are they and why do they leave?

Educational Attainment vs. Employment (US Census Educational Attainment; US Department of Labor Quarterly Census of Employment & Wages) TJPDCAlbemarleC’villeVirginia Labor Demand (Jobs) Low Skill52.60%51.30%52.40%55.30% Medium Skill22.70%18.80%28.00%21.80% High Skill24.70%29.90%19.60%22.80% Labor Supply (Residents) Low Skill40.20%31.60%29.70%44.20% Medium Skill26.50%21.30%39.40%27.30% High Skill33.30%47.10%30.90%28.60% Underemployed Low Skill-12.40%-19.70%-22.70%-11.20% Medium Skill3.80%2.50%11.40%5.40% High Skill8.50%17.20%11.30%5.80%

ISSUE 1 Is Underemployment Really an Issue? Anecdotal evidence is pointing in that direction. It warrants a more in-depth look.

ISSUE 2 Is Charlottesville Immune from Recession? Are we Losing our Middle Class?

Unemployment in Greater Charlottesville TJPDC Unemployment, vs. VA and US (VA Employment Commission)

Greater Charlottesville Employee Growth by Industry Q Q (US Department of Labor, Quarterly Census of Employment & Wages) (L8 - 12) $ (L14 – 16) $ (12 – 14) $ (L14 – 20) $1,280.21

Greater Charlottesville - Industry by Occupation (Q US Department of Labor Quarterly Census of Employment & Wages - Employees (n = 75,692) 29.1% 9.6% 34.2% 27.1% (L8 - 12) $19,784 (L14 – 16) $39,345 (12 – 14) $37,361 (L14 – 20) $42,639

Greater Charlottesville - Industry by Occupation (Q US Department of Labor Quarterly Census of Employment & Wages - Employees (n = 100,971) 29% 10% 34% 27% 29.7% 12.8% 40.7% 16.8% (L8 - 12) $22,630 – UP 0.73% (L14 – 16) $47,393 – UP 1.05% (12 – 14) $44,385 – UP 0.94% (L14 – 20) $66,571 – UP 2.94% Q (Average Wage $42,588) *Q Q Annual Employment Growth 1.73% *Q Q Annual Wage Growth 1.42%

Unemployment in the Culpeper Region RRPDC Unemployment, vs. VA and US (VA Employment Commission)

Culpeper Employee Growth by Industry Q – Q (US Department of Labor, Quarterly Census of Employment & Wages) (L8 - 12) $ (L14 – 16) $ (12 – 14) $ (L14 – 20) $1,087.70

Culpeper Industry by Occupation (Q US DOL Quarterly Census of Employment & Wages - Employees (n = 33,701) Q (Average Wage $30,854) 36.2% 9.3% 27.1% (L8 - 12) $20,654 (L14 – 16) $34,077 (12 – 14) $33,577 (L14 – 20) $40,600

Culpeper Industry by Occupation (Q US DOL Quarterly Census of Employment & Wages - Employees (n = 47,976) 27.5% 9.5% 32.8% 30.2% (L8 - 12) $22,637 – UP 9.6% (L14 – 16) $35,303 – UP 3.5% (12 – 14) $41,670 – UP 24% (L14 – 20) $56,560 – UP 39% Q (Average Wage $35,204) *Q Q Employment Growth 42% *Q Q Wage Growth 14%

ISSUE 2 Is Charlottesville Immune from Recession? Somewhat, but it’s increasingly coming at the expense of economic diversity. Are we Losing our Middle Class? There is some erosion, a trend that raises red flags. The real issue is the shift within the wage group and its affect on residents.

ISSUE 3 Why do we have Chronic Unemployment and Poverty in the African-American Community?

Culpeper Industry by Occupation (Q US DOL Quarterly Census of Employment & Wages - Employees (n = 47,976) 27.5% 9.5% 32.8% 30.2%

Greater Charlottesville - Industry by Occupation (Q US Department of Labor Quarterly Census of Employment & Wages - Employees (n = 100,971) 29% 10% 34% 27% 29.7% 12.8% 40.7% 16.8%

% 28.0% 44.4% 14.7% Albemarle County - Industry by Occupation (Q US Department of Labor Quarterly Census of Employment & Wages - Employees (n = 48,454)

City of Charlottesville (2008 US Department of Labor Quarterly Census of Employment & Wages - Employees (n = 35,024) 16.6% 32.6% 39.6% 11.2%

Unemployment Trends VA Employment Commission - Charlottesville Unemployment, by Education

Education Levels US Census - City of Charlottesville Educational Attainment by Race, +25 years (n = 21,807) BlackWhite No HS Diploma34.5% HS Diploma37.2% Some College16.6% PS Degree11.7% No HS Diploma15.0% HS Diploma17.4% Some College15.0% PS Degree52.6% No HS Diploma39.3% HS Diploma37.2% Some College16.0% PS Degree7.5% No HS Diploma31.1% HS Diploma37.3% Some College17.0% PS Degree14.7% Black MaleBlack Female

Unemployment Trends VA Employment Commission - Charlottesville Unemployment, by Race Population Estimates 69.5% White 22.2% Black 8.3% Other Population Estimates 69.5% White 22.2% Black 8.3% Other White Unemployed Black Unemployed, Average 53% of Total; Range 39 – 66%

ISSUE 3 Why do we have Chronic Unemployment and Poverty in the African-American Community? The complexities of race always remain, but the crux of the problem lies in poor educational attainment and an increasing lack of opportunity.

Policy Prescriptions & Ideas A regional economic development strategy designed to recapture our resident labor force. Local public spending to match federal / private funds to transition dislocated and unqualified workers into demand occupations. Create a skilled trades renaissance by implementing changes in comp plans to include funding for infrastructure, business parks, spec buildings, training and incentives for desirable industry. Support individuals and organizations with the vision and leadership skills to achieve it.