NORFOLK, Va. – Old Dominion University’s annual State of the Region report for Hampton Roads was released Tuesday.
"If it feels like the economy is headed two directions at once, you are not alone," said Dr. Robert M. McNab, director of ODU's Dragas Center for Economic Analysis & Policy. "Jobs are plentiful but workers are in short supply. Profits remain strong, but supply chains continue to buckle. Inflation continues to erode purchasing power and the Federal Reserve is on a mission to reign over inflation by raising interest rates."
The report examines the current state of the economy in the region to help leaders in the community with future decisions. It uses data and focuses on several different topics. This year the report looks at the following topics in the community - nursing, refugees, the legal profession, and recreational swimming.
“If we don’t understand where we are, how can we understand where we want to go,” said McNab.
This year’s progress report for Hampton Roads is a bit bleak.
McNab said the uncertainty of the COVID-19 pandemic, inflation and rising interest rates continue to impact daily lives.
“In 2022, our recovery has been slower and it’s still incomplete,” he said. “The question is why is it incomplete? Some of it is inflation. Every dollar now buys less than it bought in 2021 or 2020. If what we are earning buys less, then economic activity tends to slow down.”
McNab said Hampton Roads is growing but not as fast as the state or nation.
High rent and housing costs are partly to blame.
“We have 100,000 households in Hampton Roads that are spending more than 50% of their wages on shelter,” said ODU Associate Professor of Economics Dr. Tim Komarek.
While unemployment continued to fall, employers are still struggling to fill jobs. That’s because McNab said workers are in short supply, including nurses.
He added that the shortage of nurses could spell trouble for healthcare.
“We’re just not producing the amount of nurses that we need to take care of the population,” said McNab. “This is going to strain the healthcare system in the region.”
Investing in the profession and making housing more affordable would pave the way for a brighter 2023.
The annual report suggests building up, like in New York City, rather than finding more land to build on, would add to the housing supply.
On a positive note, the Port of Virginia is on track for another record year. The report stated that while other ports struggled to move cargo traffic over the last 12 months, the Port of Virginia increased traffic.
McNab said more investments like these would create more jobs and boost the economy.
“We have to invest in those areas where we have an advantage – renewable energy; unmanned systems; the maritime industry; healthcare and health research,” he said. “By building capacity in those areas, we could foster a higher rate of growth.”
Tuesday’s presentation was held at Norfolk Waterside Marriott. A second event will be held in Newport News on October 7. Both events are hosted by the Hampton Roads and Virginia Peninsula Chambers of Commerce.
There are six chapters in the report:
Inflation, Drones, and the Economy of Hampton Roads
The Rent is Too Damn High: Housing in Hampton Roads
Splish – Splash – Cash: Swimming in Hampton Roads
Does Hampton Roads Have Enough Nurses?
Perhaps I Won’t Go to Law School After All: Lawyers in Hampton Roads
Strangers in a Strange Land: Finding Refuge in Hampton Roads
Below is a summary of each chapter sent out by ODU News:
Inflation, Drones and the Economy of Hampton Roads: 2022 may be characterized as the "best of times and worst of times." Unemployment continued to fall and wages continued to rise. On the other hand, prices at the grocery store, gas station, and almost everywhere else continued to rise as well. The 2022 State of the Region report discusses the economic environment in Hampton Roads and explores prospects for future growth.
The Rent is Too Damn High: Housing in Hampton Roads: Is Hampton Roads an affordable place to live? This chapter explores housing affordability in Hampton Roads, Virginia and the United States and asks what the region can do to make housing less expensive.
Splish - Splash - Cash: Swimming in Hampton Roads: Hampton Roads is home to several premier swimming organizations and Hampton is busy building a state-of-the-art aquatics facility. The report explores how swimming is intertwined with the history of the region and the economic impact of the sport on the economy and lives of the region's residents.
Does Hampton Roads Have Enough Nurses? In 2021, nurses ranked again as the most trusted profession in the United States. As more nurses report symptoms of burnout and some quit the profession entirely, the report examines the coming shortage of nurses in Hampton Roads, Virginia and the United States.
Strangers in a Strange Land. Finding Refuge in Hampton Roads: In 2021, a record 90 million people were forcibly displaced, fleeing war, violence, human rights violations and persecution. This chapter explores how these developments are affecting Hampton Roads, which has received more than 300 Afghans and other political refugees over the past 18 months.
Perhaps I Won't Go To Law School After All: The Declining Economic Fortunes of Lawyers in Hampton Roads: While movies and television shows portray lawyers as members of high society, the reality in Hampton Roads is grittier. Between 2005 and 2021, lawyers' real income in the region declined by more than 25 percent. What might the future hold for the legal profession?
