Just barely. There was an excellent discussion about employment in Nevada today on KNPR’s State of Nevada program. Recent data showed that Nevada’s unemployment rate exceeded the nation’s average for the first time in years: 4.6% of Nevada residents reported themselves as out of work last week compared to 4.5% across the country.
So what’s driving the current rate of joblessness? The answers are not surprising but understanding the dynamics between industry and employment in Southern Nevada helps to explain the anticipated recovery. Two of the three biggest employers in Nevada, Gaming and Construction (Government is the third) are each in involved business cycles that are curently pushing up unemployment numbers.
Gaming
There have been no major casino openings since Red Rock Casino and Resort, which opened in April of last year. So, we have not seen any significant increase in gaming jobs in over fourteen months. But construction of new mega-resorts and the expansion of properties on the Las Vegas Strip (Wynn, Venetian) will create thousands of jobs in gaming and hospitality. Beyond the increase in jobs, these resorts will further diversify corporate revenue streams into entertainment, dining and retail, which is good for Las Vegas long-term.
Construction
The residential housing bust is no doubt hurting construction jobs. Builders have slowed development in response to tepid sales. As inventory catches up to the lower demand, construction jobs should reach a new equilibrium. Business and government construction should continue to grow modestly as well.
While on the surface a 4.6% unemployment rate may look bleak, the explanations seem reasonable and we can be confident that developments currently underway will improve the job market in the years to come.