Virginia Democratic gubernatorial candidate Abigail Spanberger is calling out Republican leadership after a report from the University of Virginia’s Weldon Cooper Center for Public Service showed employment growth in the Commonwealth is likely to stagnate in 2026.
“This report confirms what I’m hearing directly from Virginia business leaders, workers, small business owners, farmers and producers, and families — that the Trump Administration’s reckless policies are stifling Virginia’s job market, driving up costs, and jeopardizing our Commonwealth’s long-term economic strength,” Spanberger said in a statement.
The Cooper Center’s Economic Forecast is an annual report that analyzes key trends in inflation, employment growth, unemployment rates, Gross Domestic Product expansion, and government employment.
Analysts expect unemployment rates to begin increasing in Virginia as Department of Government Efficiency (DOGE)-led federal workforce cuts continue, with only 200,000 jobs expected to be added in 2026, compared to 780,000 jobs created in the first six months of 2025.
The report further notes that tariffs led by the Trump administration are increasing the cost of imported goods, while federal budget cuts are expected to continue.
“Virginia is expected to shed 11,700 jobs in 2025, a 0.3% decline from the previous year,” the report reads. “Due to delayed federal layoffs and postponed tariffs, job losses are projected to intensify in the second half of the year and extend into 2026 … effectively resulting in zero employment growth.”
The current outlook for 2027 shows an employment increase of just 0.4% for the entire year, up from 0.1% in 2026. However, Virginia could still benefit from increased federal defense spending because of the state’s specialization in the industry, the report notes.
Spanberger used the report to target her political rival in this year’s Governor’s race, current Lt. Gov. Winsome Earle-Sears. Spanberger said Earle-Sears is “downplaying the reality of Virginians losing their jobs,” while “cheering on” the White House.
“Virginians deserve a Governor who will put Virginia’s economy first,” Spanberger said. “As Virginia’s next Governor, I will do everything in my power to get Virginia’s economy back on track.”
In July, Spanberger announced her “Growing Virginia Plan” prioritizing job creation and economic growth by emphasizing workforce training programs for students.
