NEVADA ECONOMY: Unemployment rate dips in April - Business

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May. 17, 2008
Copyright © Las Vegas Review-Journal

NEVADA ECONOMY: Unemployment rate dips in April

Economists: Recession is here but recovery not far behind

By JOHN G. EDWARDS
REVIEW-JOURNAL

People wait in line to enter a job fair in New York on April 16. The Labor Department reported a nationwide increase in the number of laid-off workers applying for jobless benefits last week. Nevada posted a 0.1 percent decline in unemployment in April.
Associated Press file photo

Click image for enlargement.

Nevada's economy continued to shuffle along in a probable recession as the state reported on Friday a 0.1 percent decline in unemployment last month.

The state's unemployment registered at 5.7 percent in April, one-tenth of a percentage point lower than in March, but still 1.1 percentage points higher than April of last year, according to the Nevada Department of Employment, Training and Rehabilitation.

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Employment increased by 1,400 over March but is down by 5,800 from the April 2007 level.

"Data supports the idea that Nevada is likely in a recession," said Jeff Thredgold, economist for Nevada State Bank.

Nevada, California, Arizona and Florida led the country in growth between 2003 and 2006, he said.

"These high-flying states where the market got carried away are now all dealing with recession," Thredgold said.

"Nevada is kind of paying the piper for prior excesses in real estate," Thredgold said. Analysts are divided over whether the country is in a recession or merely a slow growth period.

Nevada labor economist James Shabi said the slight decline in unemployment since March is a lower bounce than normally seen in the spring, indicating the economy is soft.

By contrast, unemployment ran 4.1 percent statewide in April 2006. Since then, "it's been a pretty steady upward trend," Shabi said.

Thredgold pointed to strong statewide job growth in 2004-2006, slowing growth in 2007 and generally declining employment this year.

The unemployment rate in Las Vegas last fell below 4 percent in March 2006, when it was 3.9 percent, Shabi said.

The jobless rate in the Las Vegas area ran 5.5 percent in April, 1.1 percentage points higher than a year ago. Las Vegas recorded a 5.7 percent unemployment rate in January, the highest since July 2003, when the area was still reeling from the economic aftershocks of the Sept. 11 terrorists attacks of 2001, Shabi said. Despite the high unemployment, the long-term outlook for Las Vegas remains strong, Thredgold said, pointing to continued in-migration and job creation at casino resorts and mixed-use projects on the Strip.

The state's economy may recover by late this year or early next year, Thredgold said.

In Las Vegas, government job growth was strongest, up 4.2 percent over a year ago as local agencies hired the most new workers. Government employment often rises about this time of the year as students are hired for temporary jobs, Shabi said.

Job demand remains slack in the private sector.

Las Vegas construction employment fell 8.2 percent from the level in April 2007.

Professional and business services jobs dropped by 4.3 percent from the same month last year. Leisure and hospitality was off 0.5 percent from a year ago.

The Reno area jobless rate was 6 percent, down from 6.2 percent in March; Carson City was 6.5 percent, down from 6.9 percent in March; and Elko was 3.8 percent, down from 4.2 percent in March.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Las Vegas is Flaky wrote on June 10, 2008 02:44 AM: The employment opportunties are terrible here for people looking for a career or even a decent paying job. I am skilled, educated and professional, but I have had no luck. I have worked many temp agency assignments and the average job is only $10 an hour. That's not enough to pay mortage, car, gas/fuel etc... I am discouraged. A couple of months ago, decided to apply for a job with MGM Mirage, then they made an announcment that they were laying off 400 of thier managers immediately. So afterwards, I went online and applied with 5 airlines. The following week, two of the airlines went out of business. The other 3 airlines never responded to my application. So I changed professions again and decided to apply with a rental car company. I interviewed with them and was hired. The day before orientation, I got a call and was told that they are now on a hiring freeze and had to cxl the class. Well, I will keep on trying, but Im running out of ideas!!! 90% of the jobs in LV are hospitality jobs. So yes, I know we are in a recession. I have even been creative within my career search by applying for a government/city job. It took them a year and 3 months to physically hire me. Mind you, that was after taking the written exam and ranking to be one of the first 20 people to be hired from 200 applicants. I thank God for taking care of me. My faith is in Him, and not any of these flaky jobs. Kathy wrote on June 01, 2008 10:27 AM: These figures are totally off the mark. Personally I've been out of work for almost 6 months,have applied at over 80 places, my friends and neighbors are all being laid off their jobs and their reporting unemployment rate is dropping? Who's white washing what? Read the numbers, you have a point about so many people moving here taking jobs of long time residents, and illegals that the casino industry hires as a matter of routine, but you do need to get a clue. This IS financial disaster for many people! Where do you think the burden is going to fall when most have to get government assistance with welfare programs and home forclosures? UNEMPLOYED is right...the only reason those numbers look better is people ran out of benefits and fell off the radar. Not only does the casino industry blow off people over 40, they're importing foreign workers on the roose that they need employees having the government foot the bill, while the rest of us can't pay our bills and are looking at having our electric and propane turned off. Read the numbers wrote on May 17, 2008 11:56 AM: Show some intelligence people. Employment is up 3%! Much of the country would love to have that. The unemployment has been going up for 2 years because more people have moved here than jobs have been created. Is that really the fault of the local economy? What if there were no net new residents, we'd have unemployment falling quickly. Just reflects on the fact that even if times seem tough here, people from everywhere else still seem to believe there is lots of opportunity here and are showing their conviction with their feet and households. I'm tired of the endless doom and gloom. Times aren't great, but it isn't a disaster either. Yes if you lost a job or can't find one its not good times, but for over 90% of the population that isn't the situation. Should we all feel horrible and gloomy about a minority of the population having tougher times? Caroline wrote on May 17, 2008 10:50 AM: It is hard to find a job here now. Not your fault. And at 40 plus, it becomes a bit harder. Tina Marland wrote on May 17, 2008 09:48 AM: If unemployment is so high, why isn't there an extension for unemplpoyment benefits. I'm almost 60 and have been unemployed for almost 1 year after being terminated from a position that I held for 17-1/2 years. The corporations and casinos want youngsters in their employ. I can't seem to get an answer about the unemployment issue. unemployed wrote on May 17, 2008 07:19 AM: unemployment didnt dip, those that havent found a job just fell off the radar, that's all. Dont let this article fool you.