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HARDLY HIRING

Upcoming resort openings unlikely to stem tide of job loss in valley







Clinton Tell hurries through Planet Hollywood Resort with résumé in hand, hoping this day will be different from the others. Tell is an unemployed warehouseman in his late 30s. He is attending a job fair for a chance to be one of 800 hired by the Strip resort for the November opening of its 1,201-room PH Towers.

Tell was laid off in October. Like so many other Las Vegans, he's at the point where he is willing to switch careers just to work, but hasn't had much luck.


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  • "In the last 30 days, I've put in 23 applications," Tell said. "It's so bad that even telemarketers are asking for experience."

    Local projections for the job market mostly paint what analysts concede is a bleak picture. Few local industries are expected to increase hiring over the next two years. Most sectors, including construction, hospitality and leisure, are likely to continue to shrink in both the percentage of jobs available and in wages paid.

    "We aren't seeing any improvement. We don't expect unemployment to go down. But as far as a spike (upward), who knows?" Jered McDonald, an economist for the Nevada Department of Employment, Training and Rehabilitation, said of the immediate job picture.

    The state's unemployment rate rested at a record 12.5 percent as of Friday; the rate for Las Vegas was 13.1 percent, based on July data. The state rate jumped half of a percentage point from June, while the local rate was up eight-tenths of a percentage point from the month before.

    Unemployment in North Las Vegas reached 14.8 percent, Applied Analysis principal Jeremy Aguero said.

    Just before the release of the latest unemployment data on Aug. 21, McDonald said he was not expecting much improvement over the next two years.

    "Don't expect this to get better," he said. "Even if the (July) rate is equal or slightly less than the June rate, it won't change the fundamentals of the market."

    Although McDonald said that his outlook is uncertain at best, he said some past DETR projections have turned out to be overly optimistic.

    The department is not projecting a return to job growth before 2012. DETR's projections only go out as far as the end of 2011. Statewide estimates now project a 1.3 decline in jobs for that year. Unemployment is expected to rise in Nevada through the middle of next year.

    "It will top out at 13 or 14 percent, and stay there for a while," McDonald said.

    SOME HELP WANTED

    The rising local unemployment rate does have an upside for some firms. The jobs dearth has allowed those companies that are still hiring to get pickier about employees. Planet Hollywood Resort, MGM Mirage's CityCenter, the Hard Rock Cafe, Wells Fargo & Co. and Kohl's Corp. were among those holding very public job fairs recently. Large turnouts provided many options for potential employers.

    Hundreds of people devoted part of their Saturday to attend an August Wells Fargo job fair, which was held to fill 150 teller and personal banker positions statewide. The majority of those openings were in Las Vegas. Wells Fargo Nevada Regional President Kirk Clausen said the bank has been bombarded with applications, even without holding such events.

    "I can't tell you how many thousands of résumés are sitting at our human resources department," he said. "Some of the (problem) is, 'Are they qualified?'"

    Planet Hollywood Resort expected at least 1,000 people to show up at its late-July job fair. Thousands more applied online. The longest recession since World War II, combined with the city and state's highest unemployment rates ever, provided company President Bill Feather with a better variety of applicants than he would have during boom times.

    "We know we might get over 10,000 applications ... It is a great time to be hiring," he said.

    Looking around at the people filling tables at the resort's job fair, Feather was pleased.

    "The attitude is better, and we see people wanting to get into gaming that we haven't seen before," he said. "We are happy about that."

    The hospitality sector's biggest boost will come from the mid-December opening of MGM Mirage's $8.5 billion CityCenter, which is expected to create more than 12,000 jobs. Hard Rock Cafe held its own job fair in late July to hire another 500 people for its opening next month.

    As hours continued to be cut, part-time jobs are also in demand. Kohl's, for instance, took over three valley Mervyn's locations for which it will need to hire a slate of new employees. Hundreds of people turned out for four days of job fairs earlier this month.

    "All of our scheduled (interview) slots were full and we added a couple hundred slots to our 900 scheduled slots," Kohl's District Manager Rebecca Montijo said.

    The recession has made job applicants take a second, serious look at retail positions, she said.

    "It's competitive pay and a great range of benefits for what is offered in the market," Montijo said. "People are realizing that the marketplace is different now."

    WHERE THE JOBS ARE

    PH Towers' opening in November and MGM Mirage's debut of its CityCenter a month later would appear at first glace to be beacons of hope for the local job market. But, the ensuing spike in hospitality hiring will be diminished by the abrupt end to the thousands of construction jobs related to the projects. McDonald notes that those jobs are unlikely to be replaced anytime soon. CityCenter alone was responsible for some 8,500 construction jobs.

    The construction industry is on a path of continued decline, DETR predicts. Employment in the sector is already down 23.6 percent in Nevada from a year ago in June. That marks three years of declines from its peak of 148,800 in 2006.

    "We have lost 56,200 (construction) jobs in the last three years," McDonald said.

    That sector is expected to decline further in the next few years. By the fourth quarter of 2011, DETR forecasts the number of construction jobs in the state to drop to 73,384.

    Even an increase in home sales would be offset by losses in commercial construction jobs, McDonald said.

    University of Nevada, Las Vegas economist Keith Schwer doesn't offer much hope for the construction industry in Las Vegas to improve, either.

    "We have too many houses, too many shopping centers, more than enough hotel rooms and an ample amount of rental spaces," he said.

    Statewide employment in leisure and hospitality has slid 7.1 percent statewide since last June, DETR reports. McDonald doesn't expect a quick fix, even with the thousands of jobs created by CityCenter.

    "The outlook isn't too good. We've seen a change in the spending habits of Americans," he said. "They don't have the disposable income they had before, and when they do, they are saving it."

    National predictions for tourism are more optimistic. John Challenger, CEO of Chicago-based outplacement firm Challenger, Gray & Christmas, said the Silver State has something unique.

    "With tourism and gaming, Nevada has a driving force," he said in predicting a bump in employment in that sector.

    Expectations for job growth in the local health care were far more encouraging. Challenger, Gray & Christmas predicts medical-related jobs will be one of the fastest-growing sectors nationally. Las Vegas is in good position to benefit from the boom, partly because of its large influx of retirees.

    "The future of Las Vegas, if it taps into one big area, is health care," Challenger said.

    Health care is also one of the precious few bright spots for local job creation, DETR forecasts. Despite the recession, health care employment in Nevada has grown by 2 percent over the last year. The industry segment is projected to grow 2.2 percent this year and in 2010, and 2.5 percent in 2011. McDonald called that growth pace "significant."

    DETR is trying to formulate data on job creation in renewable energy. The department is trying to calculate the effect of President Barack Obama's green jobs initiatives and economic stimulus programs, McDonald said.

    WHEN WILL NEVADA RECOVER?

    Opinions are mixed on when Las Vegas will rebound. All observers seem to agree that Nevada will lag the national recovery. But some industry segments may take years after that to rebound, McDonald said.

    "I've heard forecasts of 2016 for a (recovery) in construction," he said.

    Las Vegas-based business advisory firm Applied Analysis uses a "conservative" and "base" or "mild" models when forecasting the unemployment outlook and other economic data, Aguero said.

    "We have a very mild model that expects modest job growth in 2010," he said. "The conservative model expects negative job growth in 2010 and in the first two quarters of 2011. We think the mild model is more likely."

    Schwer sees the national recession ending in the fourth quarter of 2009, but expects the Southern Nevada economy to take much longer to recover. However, he said it could've been worse.

    "We won't have another Great Depression," he said. "I can predict that."

    Contact reporter Valerie Miller at vmiller@lvbusinesspress.com or 702-387-5286.

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    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    fljohngalt wrote on September 04, 2009 11:08 PM: 2 simple lessons are offered below.

    Unions reduce the # of people a business can afford to hire, this means less jobs.

    Illegal immigrants not only take low-skill jobs, they eventually take higher quality jobs and start illegal business that can out-compete legal American business (ie. landscaping, construction, restaurants, cleaning, etc.) and also make Americans who only speak English less valuable in the job market. This means less jobs. Try getting a bank teller job in Vegas without being able to speak Spanish. You're now confined to smaller areas of the city where this is possible.

    So, possibly we could shift some of the mis-guided anger directed at the producers (ie. business owners and investors) and re-direct the anger at the looters (ie. illegal immigrants and unions).


    V wrote on September 04, 2009 03:40 PM: To Natalie:

    What kind of customer service were you in with an MBA? From what it sounds like you were overqualified for that call center position. I;m sure they wanted some young schmuck with no education where they could train and control him/her.

    I know there are various situations that people are in and that the job market has really gone into the toilet since last year but I was in this situation about a year ago after being laid off in April 2008. The problem I had initially was that I/we were all used to a healthy job market here in Las Vegas and thought jobs would always come easily which they did for a while. I realized things had changed and changed my strategy. People, you need to be hungry!! Be proactive in your job search. For educated professionals looking for employment, the actual search is a full time job in itself.


    Randall wrote on September 04, 2009 01:18 PM: Shelley hit the nail on the head with her blog.Hey to whose screen name is Uneducated Workforce. What in the he!! would you expect? Everything you mentioned is what makes Las Vegas sooooooooooo cool and make alot of these business's so much money.And yes in the future to just let you know that things wont change much in the way of education.And that's just the way Las Vegas likes it.It's the story of Vegas as we all know it.Take a shot in the dark and move to Vegas with a High School diploma at best and make your dreams come true.Alot of people fail but just being able to try and live in a wild city doing so is why Las Vegas will never die.


    joe wrote on September 04, 2009 02:19 AM: What is interesting is we, as taxpayers, have to fund outrageous salaries for Nye Co. School District upper adm. [ie 250k for a superint. who only oversees 400 teachers], while all the lower paid workers are let go & class sizes increased [ie Nye Co. School District let 43 of its 450 teachers go]. Even more incredible is that the fatcats keep getting fatter, while expecting teachers there to take an 8% pay cut. It's time to get rid of those who rip us off & put real workers back into their jobs.


    Shelley wrote on August 30, 2009 11:04 PM: The unofficial unemployment rate is much higher in LV than 13.1% So it seems that the solution is that those out of work become health care providers?
    Unemployment DOES pay more than $8 or even $12 an hour, especailly if you used to make bank before you were laid off. Why not suck the dole until it runs out? In 6 or 10 months when those on the dole, get kicked off of it, and most casino companies do finally go belly up, you're gonna see crime in this town sky rocket. The worst is yet to come my friends. Wait till rooms at Bellagio are $29 and Cirque Du Soleil tix are $9.95. This boom town is BUST and may never rise again to the glory days of the 1990's.


    ToAll wrote on August 30, 2009 10:58 PM: To KD: you need to update your skills, either more technical or change fields ie medical or engineering. you have a "softskill" position.
    Also LV is done for construction for a few years. this is a small town.
    Constant adapation.


    KD wrote on August 30, 2009 10:26 PM: To Kevin

    Sorry, not ITT Tech. or University of Phoenix or CSN or UNLV.

    It is Texas A&M University. One of the best Construction Management Programs in the country.

    Like Natalie says, educated folks are "not a good fit" because the people interviewing you know there is a chance you are smarter and better than them and the risk of taking you on is not worth it.

    I wasn't laid off so my company could keep its corporate profits going. The whole Vegas office was laid off and is now closed.

    Like To Natalie wrote, educated jobs are gone. Most jobs that exist only require a HS Diploma or a GED. Just log in to City Center or any other hotel. Most management postitions only require a HS education.

    Careerbuilder, Monster and Craigslist all yield the same. HS diploma and 10 to 20 bucks an hour.

    There are very, very few jobs out there available that are paying over 50K per year. If they do, the job specifics and qualifiactions are nearly unattainable for most. The company is looking for that needle in the haystack.

    To those of you with jobs (most probably work for a public institution of some sort) spend an hour or two looking for something that pays what your being paid with matching benifits.

    When you can't find anything think about doing that everyday. This is what it is like being laid off in Vegas.

    Tweedledee hit the nail on the head. I know because I used to be one of those "experts". I made it through 4 rounds of layoffs. It was the final round that took me out. When the shoe is on the other foot you'll see.


    kevin wrote on August 30, 2009 08:26 PM: To KD:

    I dont think ITT Tech qualifies as a TOP TEN university


    tweedledee wrote on August 30, 2009 07:56 PM: It's easy to tell the ones who still have jobs. They are the ones who are telling out of work people their shortcomings and give advice on how to get a job. So experts, when you finally lose your jobs and can't find another one, come back and tell us again how easy it is. The reality is there are not enough jobs even for the educated and the skilled. With Wall Street and corporations still bloated on educated staff, the outlook for the educated isn't so hot either.


    To Natilie- wrote on August 30, 2009 06:55 PM: You were probably not a good fit due to fact you are "overly qualified", i.e. too intelligent.

    Senator Harry Reid has chased all the high tech jobs out of Nevada. Unless you are good at dealing cards or serving drinks, you may want to leave Nevada for a different area.


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