Total establishment-based industrial employment in the state rose modestly over the month but is still 0.3 percent below the March 2007 level at nearly 1.29 million.

"Right now, the current employment situation is best described as flat," said Bill Anderson, the department's chief economist. "But in 2009, we expect more normal growth and it will pick up beyond that in 2010."

The only good news came from the state's mining regions, Anderson said. Elko, Esmeralda, Humboldt, Lander and White Pine counties all posted unemployment rates below 5 percent in March.

"Market fundamentals are very favorable in terms of commodities. They're certainly a bright spot in our economy," he said.

In Las Vegas, the unemployment rate rose to 5.6 percent in March, compared with 5.4 percent the previous month and 4.3 percent a year ago. Again, total employment was off 0.3 percent at 925.5 million.

The onset of spring typically leads to solid job creation in construction and gaming, two key industries for Nevada, Anderson said.

From 2002 through 2007, the construction industry added more than 2,500 jobs on average from February to March. This year, the industry lost 300 jobs.

"Obviously, in the short term, we're facing difficult times in residential, but looking at the long term, we'll have mid-single-digit growth in job and population growth that sets the stage in terms of income growth that could support a healthy housing market," Anderson said.

During the previous six years, employment in casinos and hotels increased by an average of more than 1,000 jobs in March, which is typically a strong convention month in Las Vegas. Gaming employment grew by only 100 in March and may drop in April with announced layoffs at MGM Mirage.

Anderson said CityCenter and Encore at Wynn Las Vegas will help generate a significant number of jobs both during construction and after opening.

"We're looking at that activity to be a catalyst for economic growth beginning in 2009," he said.

John Restrepo, principal of Restrepo Consulting Group in Las Vegas, said employment growth is down largely due to losses in real estate sectors of the economy. The construction industry has shed 7,400 jobs from a year ago, while financial, business and professional services are down 5,900 jobs.

Gains in other sectors -- led by 5,400 new jobs in trade, transportation and utilities -- have exceeded those losses, Restrepo said. The percentage of Clark County population in the work force has stabilized at about 49 percent, he said.

The department's Anderson noted that Nevada's labor force was revised downward by more than 10,000 for 2006 and 2007, reflecting slower population growth. However, changes to unemployment rates for the state and its major labor markets were minimal.

Las Vegas went from 4.1 percent to 4.2 percent in 2006 and remained unchanged at 4.8 percent in 2007.

The national economic picture is "equally discouraging," Anderson said. The unemployment rate is the highest since September 2005 and the economy lost 80,000 jobs in March.

"The specter of looming job losses combined with record gasoline prices, rising food costs, declining home values and large numbers of mortgage foreclosures have driven consumer confidence to new lows," the economist said.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.