CHARLESTON, WV – The West Virginia business community is sounding a major alarm over a deepening crisis in the state’s labor force participation, a critical economic indicator that has seen a consistent decline over the past year. This worrying trend, highlighted by the West Virginia Chamber of Commerce, points to a broader economic softening driven by a confluence of lingering high interest rates, persistent demographic challenges, and significant weakness across several key industries.
Steve Roberts, President of the West Virginia Chamber of Commerce, recently described the latest employment figures from WorkForce West Virginia as “troubling,” emphasizing the sustained contraction of the workforce and job losses. The news has amplified calls for urgent and comprehensive strategies to reverse a long-standing issue that threatens the state’s future prosperity.
The Troubling Decline in Numbers
Recent data underscores the severity of West Virginia’s labor market challenges. The state’s seasonally adjusted civilian labor force experienced a notable drop of 7,600 workers, shrinking from 787,600 in July 2024 to 780,000 in August 2025. This decline is part of a longer trend, with total employment in West Virginia decreasing for 14 consecutive months. The state’s civilian labor force last peaked at 795,800 in late 2019, just before the COVID-19 pandemic. West Virginia’s labor force participation rate, currently around 54.2% to 55%, remains the lowest in the nation, a position it has held or been very close to since data collection began in the 1970s. This stands in stark contrast to the national average, which is significantly higher, at approximately 62.6%. Comparatively, neighboring states like Kentucky (58.4%), Maryland (64.7%), and Virginia (65%) demonstrate a much higher engagement with the workforce.
Economic Headwinds and Sectoral Weakness
According to the West Virginia Economic Outlook report from the Bureau of Business and Economic Research at West Virginia University’s John Chambers College of Business and Economics, employment in the state is projected to remain flat through 2029, significantly lagging the national expected job growth rate of 0.5% annually. The major drivers for this stagnant growth include the persistent impact of high interest rates, which increase borrowing costs for businesses and consumers, and systemic weaknesses in many of the state’s counties. While private sector employment saw a slight increase between 2024 and 2025 (from 565,900 to 567,500 jobs), this modest gain masks significant job losses in foundational sectors. Employment in mining decreased from 21,300 to 20,700 jobs; manufacturing saw a decline from 45,600 to 45,400; hospitality dropped from 71,400 to 68,700; and retail employment fell from 78,400 to 77,800 jobs. Despite these declines in specific sectors, the state’s unemployment rate, while having been at historic lows recently, is actually projected to increase to 5% by 2026 and 2027. This anticipated rise is not entirely negative, as it is expected to be driven by older residents re-entering the workforce and new, higher-wage jobs drawing discouraged workers back into active job seeking.
Deep-Rooted Demographic and Human Capital Challenges
The issues plaguing West Virginia’s labor force participation extend beyond cyclical economic factors. The state grapples with fundamental demographic challenges, notably an aging population and continued population decline. West Virginia has one of the nation’s oldest populations, with a median age significantly higher than the national average and over 21% of its residents aged 65 or older. This demographic shift naturally reduces the pool of working-age individuals. Furthermore, the state has the lowest female workforce participation rate in the country, with significant barriers such as a lack of available and affordable high-quality childcare preventing many women from entering or re-entering the workforce. Economists and business leaders also point to broader human capital limitations, including poor health outcomes, high rates of substance abuse, and deficiencies in educational attainment and job-specific training. These issues collectively hinder the ability of many West Virginians to participate actively in the labor market, regardless of their desire to work.
Calls for Action and Potential Solutions
In response to this pressing news, the West Virginia Chamber of Commerce and other stakeholders are advocating for a multi-pronged approach to revitalize the state’s workforce. Key recommendations include strengthening the Workforce Innovation and Opportunity Act Board, improving regional Workforce West Virginia efforts, and fostering better communication between community and technical education providers and employers. There is also a push for incentives to retain recent graduates within the state, the appointment of a cabinet-level leader for workforce development, and expanded job training assistance and apprenticeship opportunities. A particular focus is on expanding childcare availability, with proposals such as the “Tri-Share” program, where the cost of childcare is split equally among the employee, employer, and the state. Beyond policy, there’s an emphasis on attracting new residents through in-migration and addressing underlying human capital issues like transportation access, substance abuse, and overcoming the challenges faced by individuals with past interactions with the justice system. While these are complex, deep-seated problems without quick fixes, the business community remains cautiously optimistic that a unified, forward-looking strategy can help turn the tide for West Virginia’s workforce and economic future.
