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Job Losses Ripple Through Region, State
Thursday, April 02, 2009 4:01 AM


(Source: Richmond Times-Dispatch)trackingBy Michael Martz and Emily C. Dooley, Richmond Times-Dispatch, Va.

Apr. 2--As the state announced a 1 percentage-point jump yesterday in the Richmond region's jobless rate to 7.9 percent, another major layoff began to hit the area.

Wachovia Securities laid off 500 employees in its Richmond-area operations this week as the single biggest chunk of job losses from the financial firm's ongoing merger with A.G. Edwards took hold.

Most of the affected Wachovia employees worked in operations or information technology and had been expecting layoffs, the company said.

"None of these people were surprised," Wachovia spokesman Tony Mattera said yesterday.

The Virginia Employment Commission and other agencies providing support to dislocated workers have been swamped as the effects of the recession, which began in December 2007, began to take hold late last year.

The Wachovia layoffs will put new pressure on regional efforts to help residents from around the region cope with a wave of plant closings and job losses.

"It's been anticipated, and obviously this is another hit to the community," said George T. Drumwright Jr., deputy county manager in Henrico County, where the layoffs and corporate bankruptcies have been concentrated. "We're prepared to help these people the best that we can."

Statewide, the seasonally unadjusted jobless rate rose to 7 percent in February, up from 6.4 percent a month earlier, according to VEC data released yesterday. The United States had an unemployment rate of 8.9 in February, up from 8.5 percent.

Arlington County had the lowest jobless rate of 4.4 percent, while Martinsville had the highest rate in the state at 20.2 percent. The highest metropolitan area rate was Danville, with 12.3 percent.

Only four localities in the Richmond region -- Chesterfield, Goochland, Hanover and Powhatan counties -- had jobless rates below the state average. Richmond's rate jumped to 9.8 percent, up 1 percentage point.

Petersburg, with 14.9 percent unemployment, had the highest rate in the area, up from 13.4 percent in January. Hopewell and Sussex had rates of 12.2 percent, up from 10.4 percent.

"We've been hit hard by a couple of large businesses that have really been at the mercy of this dreadful economy," said Katherine E. Busser, chairwoman of the Greater Richmond Chamber and an executive vice president at Capital One Services Inc.

In February, memory-chip maker Qimonda North America announced it was closing down a manufacturing plant in eastern Henrico. About 1,000 people lost their jobs that month alone. In all, 1,350 will eventually be laid off.

LandAmerica Financial Group Inc. and Circuit City Stores Inc.




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