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Mar. 11, 2008
Copyright © Las Vegas Review-Journal

NEVADA ECONOMY: Indicator of jobless decreases

Job growth in Silver State registers 1 percent in 2007

By ED VOGEL
REVIEW-JOURNAL CAPITAL BUREAU

Nevada unemployment in January dropped slightly, to 5.5 percent, but remains a full percentage point above the 4.5 percent rate of January 2007, the state announced Monday.

Though pleased by the decline from December's 5.8 percent rate, state Chief Economist Bill Anderson said a better indicator of Nevada's economy is the increase in joblessness over the last year.

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    • In all, 82,200 people were out of work in January, or 17,000 more than a year earlier.

    "Our economy continues to grow but at a much slower rate than at the breakneck pace of 2004 to 2006," he said.

    At that time, Nevada led the nation in job growth, averaging more than a 5 percent increase in jobs per year.

    Anderson added the job growth rate in the state was just 1 percent in 2007. Only about 9,700 more people were working in the state in January compared with a year earlier.

    Since 1982, only twice has the gain been as low as during 2007 -- in 1983 and in 2002.

    "We are not generating the number of jobs we need to absorb all the growth in the population," Anderson said.

    He suspects job growth will be similar this year to last year's gain, but predicted it would climb to 3 percent in 2009 because of increased construction at new Las Vegas megaresort hotels and then reach 5 percent in 2010.

    He added the low job growth is accompanied by a 4.3 percent increase in consumer prices over the last year, modest gains in visitor numbers and gaming revenue, and oil prices topping $100 a barrel.

    The 5.5 percent unemployment rate in January is a seasonally adjusted rate that takes into account normal fluctuations in the economy, such as people leaving temporary jobs created at retail stores during the Christmas buying season.

    Not counting seasonal adjustments, state unemployment in January was 6 percent, according to the Department of Employment, Training and Rehabilitation.

    Las Vegas had a 5.7 percent unemployment rate in January, up from 5.6 percent in December and 4.7 percent in January 2007.

    Reno unemployment, which often is lower than in Las Vegas, climbed to 6.6 percent in January compared with just 5.4 percent in December and 5 percent in January 2007.

    Carson City had a 7.5 percent unemployment rate in January, while Elko's rate was just 4.6 percent.

    Only in Elko and other rural mining areas is the outlook rosy, he added.

    "With gold and copper prices at or near record highs, Nevada's mining industry should continue to flourish," Anderson said.

    The construction industry, in particular, has suffered big job losses since the downturn in the state economy.

    At the peak in June 2006, 148,800 people were working in construction jobs.

    In January 2008, 123,700 worked in construction, or a loss of 25,000 jobs in a little over a year and a half. That includes 5,200 jobs lost between December 2007 and January 2008.

    Nevada's unemployment rate remains below the 5.9 percent rate in California, but is higher than the 4.9 percent United States average.

    Contact reporter Ed Vogel at evogel@reviewjournal.com or (775) 687-3901.

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    Brenda wrote on April 18, 2008 11:27 AM: I came to Las Vegas via the military in 1972. I have seen the city grow and I have raised my children here. My grandchildren are now in public school here. The economy has never been constant. Even with a robust economy wages in Las Vegas have been low. Las Vegas is not immune to recession or events like 9-11. My son is a union painter and his unemployment has run out. He only works during those "robust" times. The home he is in will become a rental or go up for sale at a loss. I guess my children and grandchildren will come home and live with me. This is not uncommon in Las Vegas. The unemployment numbers do not paint a true picture of Las Vegas.


    CAS127 wrote on March 11, 2008 04:26 PM: Thanks for the honesty, RW.

    The employment-to-population figures show that there are *millions* in the same boat you are.

    The worthless "unemployment rate" figure is primarily designed to mitigate the extent to which true unemployment is reported - it is at least partially for political cover.

    People are starting to wake up to this fact - the NYT recently had a story on how the standard unemployment rate figure is terribly misleading.

    Why is it used?

    Because, when a small fraction of the population is badly underemployed, the politicians can play "champion of the poor" and skim off some of the tax funds they raise for relief of the "poor".

    But when millions and millions of middle class workers are chronically underemployed - that is a systemic crisis that politicians cannot allow to be known.

    They have no fix (hell, the are a considerable cause of the problem) and they would be held accountable.

    So, what do they do?

    They do what politicians do.

    They lie.


    greedy local business owner wrote on March 11, 2008 02:09 PM: Businesses are loving it. Thousands are moving to Las Vegas every month and yet few jobs are created. That means businesses can even ask for experience for that much in demand minimum wage job!


    roger wrote on March 11, 2008 01:41 PM: "Only about 9,700 more people were working in the state in January compared with a year earlier." But we have 6000 people per month moving here, what are they doing? Doesn't sound like they are working and we know they are not buying houses. Go figure. From what I have read these unemployment numbers back out people who have given up looking for a job and people who took a part time job because they couldn't find a full time job. Could be misleading, but hey we don't want to paint LV as a bad place.


    RW wrote on March 11, 2008 11:19 AM: These numbers reflect the people on unemployment for a 6 month period, it does not reflect the numbers of people finished with unemployment and still jobless. I've been unemployed for the last 4 years and don't see an improvement in sight.

    I know people are thinking something must be wrong with not having a job for 4 years. Well McDonalds etc etc will not hire someone that is over-qualified. After 10 years in IT security making very good money, They are not interested in hiring someone that is more suited for another more high scale position.

    Last position I held was in an auto body shop, told them I just got out of prison so I left my experience clean of any jobs held in the last 10 years. When they found out my "real" work history the national body shop sent in attorneys to determine how to get rid of me.


    Tina Marland wrote on March 11, 2008 09:25 AM: Mr.Vogel, How high does the unemployment rate have to be before the unemployed, such as I can get an extension on unemployment? It's really tough getting a job. Thank you Tina Marland.