Aug. 28--The New River Valley had the state's second-highest unemployment rate in July among metropolitan areas, according to data released Wednesday by the Virginia Employment Commission.

The reason: losses of manufacturing jobs.

Monthly figures reported by the VEC reveal that the Blacksburg-Christiansburg-Radford metropolitan statistical area had a 6.4 percent unemployment rate in July, up from 4.2 percent in July 2007. The total number of people without jobs was 4,980, compared with 3,260 last year.

The MSA includes Montgomery, Pulaski and Giles counties.

The New River Valley trailed only Danville, which had the highest jobless rate in Virginia in July at 8.2 percent, up from 6.7 percent last year.

The regional results mirror a substantial jump in Virginia's jobless rate, which last month rose to its highest in five years.

The state's unemployment rate was 4.4 percent in July, up from 4.2 percent in June. In July 2007, the rate was 3.1 percent.

The number of people without jobs in the Roanoke MSA also increased to 4.4 percent, from 3.1 percent in July 2007. That's 7,110 people without jobs, up from 4,900 last July.

Layoffs this year at manufacturing facilities, namely Volvo Trucks North America in Dublin, have lifted the New River Valley's unemployment rate higher than last year, said Bill Mezger, chief economist for the VEC.

Also, summer furloughs for some companies, such as Alliant Techsystems, operator of a Radford plant, fell within the VEC's July reporting period, the week of July 6 to 12, he said.

In May, Volvo laid off 1,100 employees, and further cuts in its work force could be ahead. This month, Volvo said it will shift production of its Mack trucks to a plant in Macungie, Pa.

The region's employment health is driven in large part by the truck industry, including its suppliers.

"We aren't a huge MSA," said Aric Bopp, executive director of the New River Valley Economic Development Alliance. "When we have major employers lay people off ... it can have a significant impact on employment figures."

College students on the hunt for summer jobs likely did not affect the month's unemployment figures. By July, many either had found jobs or had stopped looking, because "the summer is gone," Mezger said.

The Roanoke MSA's rising unemployment rate is a reflection of the slow national economy, he said. Plus, the area hasn't had tremendous job growth. That makes it difficult to absorb new workers into the labor force.

"When people become unemployed, it takes them longer to find a job," Mezger said.

The Roanoke MSA comprises the cities of Roanoke and Salem and the counties of Botetourt, Craig, Franklin and Roanoke.

However, earlier this month, Mezger said Carilion Clinic's expansion primarily was responsible for keeping job growth in the black for the Roanoke MSA from May 2007 to May 2008, during a time when manufacturing layoffs in the region continued.

During the 12-month period from July 2007 to July 2008, the most jobs added in the Roanoke MSA were in the service-providing sector, according to the VEC report. The most jobs lost were in the retail and goods producing areas. About 1,000 jobs were added in the educational/health sector.

Meanwhile in the New River Valley, there is a potential bright light for economic prospects.

Bopp pointed to the growth of the Virginia Tech Corporate Research Center in Blacksburg as "undoubtedly one of the latest examples in the region of the future of the regional economy."

As more companies move into the center, "it's driven by research and development," Bopp said.

"The transition takes place from blue-collar jobs to white-collar jobs," he said.

Staff writer Duncan Adams contributed to this report.

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