McDonnell says he continues to be committed to "Bob's for Jobs"

RICHMOND — Virginia has added more than 71,000 jobs since February and maintained an unemployment rate well below the national average, but Gov. Bob McDonnell said Thursday that his administration remains fixed on reducing an “unacceptable” jobless rate in the state.

The state’s jobs total increased to 3.65 million over the past five months, according to federal Bureau of Labor Statistics data provided by McDonnell’s administration. The new jobs include full-time, part-time and temporary positions. About 80 percent of the jobs were generated by the private sector.

McDonnell estimated that 20 percent of the new jobs can be linked to the federal economic stimulus package passed by Congress last year, but said his administration has not assessed the impact of the federal spending.

In a news conference, McDonnell delivered a status report on his administration’s job creation efforts during his first six months in office. The Republican governor, who adopted the slogan “Bob’s for Jobs” as a candidate last year, has said job creation will be a key measurement of his administration’s success.
Virginia had a seasonally adjusted unemployment rate of 7.1 percent in May, well below the national average of 9.7 percent. But Virginia’s rate had hovered below 3 percent before the national economy began a severe downturn three years ago.

“There’s a long way to go,” McDonnell said. “We have a lot of Virginians still hurting, a lot of people who can’t find work.”

McDonnell this year won legislative support for a package of incentives designed to spur job growth and make the state more competitive in attracting certain industries.

The governor said 110 economic development deals have been closed since mid-January that will produce more than 7,100 jobs and attract $1 billion in capital investment, McDonnell said. About 15 percent of those jobs will be in Southwest Virginia. Nearly a third will be in Northern Virginia.

The major economic development deals cited by McDonnell’s administration include Fanueil Inc., which will establish a customer service center in Martinsville with 250 jobs; Phoenix Packaging, which will employ 240 at a manufacturing facility in Pulaski; and Virginia Castings Industries, which is taking over the old Intermet foundry in Radford and creating 300 jobs.

Lt. Gov. Bill Bolling, who serves as McDonnell’s “chief jobs-creation officer”, said rural economic development is a “high priority” because those regions need “a little extra help.”

Bolling said Thursday’s announcement was “not a victory lap.”

“We’re very pleased by the progress that we’ve made to date, but we fully understand that there is a lot of work yet to be done to get our economy moving and jobs created,” Bolling said.