Unemployment low, local businesses thrive
JMU Harrisonburg’s number-one employer, RMH second
By Kim Chi Ha, staff writer
Posted on February 9, 2007

HARRISONBURG — Unemployment rates are dropping in Harrisonburg and the city is seeing continued growth in the areas businesses as well as a rise in new industries.

According to statistics from the Virginia Employment Commission between June and December of last year, unemployment rates fell 1.2 percent, compared to only a 0.6 percent drop statewide.

“In general [the unemployment rate], has been due to the basic growth in the area,” said Taylor Howell, local office manager at the Harrisonburg Employment Commission. “Our existing businesses have grown and expanded, and we’ve had a rash of new commercial sites, hotels, motels and eateries.”

JMU is Harrisonburg’s number-one employer, with Rockingham Memorial Hospital, R.R. Donnelley and Sons Co., Harrisonburg City Public Schools and Wal-Mart falling behind.

“JMU has been growing,” said Frank Doherty, an administrator for Institutional Research. “We’re one of many types of businesses in the economy in Harrisonburg that’s been doing quite well and able to offer more jobs as a result.”

Madison’s campus, faculty, staff and students have had a direct effect on Harrisonburg’s growth and dip in unemployment rates.

“We’ve had positive budget support from the state and as a result, we’ve been very fortunate in recent years to have been able to increase our staff,” said Yohna Cone, director of Human Resources for JMU. “Because of the fluid nature of our job openings, we typically always have job openings.”

JMU now has almost 17,000 students and more than 3,000 employees — a number that consistently increases every year, bringing business into the Harrisonburg community. 

The university’s own economic research has shown that JMU’s growth has had a positive effect on the local economy. In fact, the university, students and parents spent $292 million “JMU is a real big influence. [It] acts very much as a stimulus,” Howell said. 

“They’re an incubator for new industries and it brings industries here; there’s always an initiative that the college is doing that really helps the local community.”

According to the economic study, student Flex accounts account for more than $1.6 million in off-campus spending. Visiting parents also contribute when they stay at local hotels and motels in the area.

The unusually warm winter has also had an effect on unemployment rates, said Howell.

“It’s unusually low ‘cause we usually lose [jobs] with construction, and other weather related occupations,” Howell said. “We’ve had a slowdown in residential house construction, but commercial construction is still up.”

Not only has JMU had a positive effect on Harrisonburg’s economy, but it is attracting young professionals as well.

“I moved to Harrisonburg two-and-half years ago because I was offered a job at JMU,” Heather Roberts said. “I now work as an academic and career advisor.”