Charlottesville unemployment rose from 2.7 percent in December to 3 percent at the beginning of 2004 after heavy retail business tapered off following the fall and holiday seasons.
The rise is a typical annual trend in employment, Virginia Employment Commission Researcher Bill Metzger told WINA news last week.
"Most of the unemployment increase is a result of the higher retail business during the Christmas season at local shopping centers," said Aubrey Watts, director of the Charlottesville Office of Economic Development. "Barracks Road and Seminole Sqaure shopping centers, for instance, employ additional clerical workers in the fall and Christmas seasons."
The rise in unemployment is not a cause of concern for Charlottesville City Council, members said.
"Obviously our goal in Charlottesville is full employment," Council Member Kevin Lynch said. "But there is seasonal employment that happens over the holidays and I suspect that the slight increase in unemployment is associated with that."
In addition to fluctuations in local retail business, construction employment also typically wanes in the early months of the year, contributing to the slight increase in unemployment.
"Because of weather, construction companies do not employ the same number of people in the months of January and February," Watts said.
A decrease in tourism in Charlottesville during the winter months also may partially account for the seasonal unemployment as local hotels and restaurants may employ fewer people, Watts said.
"The increase in unemployment in January and February generally affects people in the service industries -- clerical and sales type people in shopping centers," Watts said.
Despite the recent increase in unemployment consistent with annual seasonal trends, Council emphasized Charlottesville's exceptionally low unemployment as compared to the rest of the commonwealth.
Virginia unemployment rose statewide after the holiday season as well, from 3.5 percent in December to 3.9 percent in January, according to the Associated Press.
Watts attributed the relatively stable and strong state of Charlottesville's employment to the small businesses at the foundation of the City's economy. Small business composes 88 percent of the City's businesses.
"Charlottesville does not have incredibly large industries, which when one shuts down would create major unemployment," Watts said. "Instead we have lots of small businesses, and if one shuts down it doesn't have a major impact on employment in the City."
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