Think of Richmond as a kind of District of Columbia writ small. Like the nearby national capital, the capital city of Virginia has enjoyed the economic stability that comes from being home to government agencies and offices, plus the surrounding hives of lawyers and consultants. The city also is home to a range of businesses, from electric power to tobacco to finance.
Virginia has had a stronger-than-average economy since the recession, partly due a good business climate and partly thanks to federal stimulus money that has rippled from D.C. into the surrounding region. Across the country, state capitals have had similar job-market resilience, thanks to the shock-absorber effect of rain-or-shine government activity. Looking forward, though, the government sector nationwide faces what looks like a lean era of tight budgets.
