Heavily dependent on federal contracts and burdened by ill-conceived state policies, Virginia is becoming less competitive for business, according to a new report that lays out a five-point turnaround strategy, Watchdog.org reported Monday.
While Northern Virginia continues to expand with Uncle Sam’s largess — which directly or indirectly bankrolls roughly 30 percent of the region’s workforce — the rest of the commonwealth is suffering “malaise” in its “‘real’ private-sector labor market,” said Keith Hall, former commissioner of the U.S. Bureau of Labor Statistics.
Hall estimates shrinkage in Virginia’s overall workforce since 2007 puts the effective unemployment rate at 8.6 percent, versus the official rate of 5.9 percent.
"A Tale of Two Markets: Government Spending's Impact on Virginia," co-authored by Hall and Robert Greene, offers five steps for recovery. And guess what? They have nothing to do with federal sequestration.