Las Vegas jobless rate jumps to 14 percent

The nation's party animal got left out of this bash.

Thirty-four states celebrated lower jobless rates in April, as improved economic conditions spurred hiring.

As for Nevada? The Silver State was one of the unlucky ones, posting jobless gains that pushed its unemployment to record numbers.

Nevada's unemployment rate rose from 13.4 percent in March to 13.7 percent in April. Unemployment in Las Vegas surged past 14 percent for the first time, going from 13.8 percent to 14.2 percent month over month.

Just five other states -- Colorado, Indiana, Iowa, Texas and Utah -- experienced jumps in joblessness from March to April. Unemployment in 10 states didn't change in the period.

A year ago, Nevada's jobless rate was 11 percent, while unemployment in Las Vegas was 10.5 percent.

"This trend reflects how hard we've been hit by this recession," said Bill Anderson, chief economist for the state Department of Employment, Training and Rehabilitation, which researches the jobless numbers. "We climbed from below-average unemployment (before the recession) to the second-highest rate in the nation, and as a result, it's going to take us longer to come out of it."

Only Michigan had higher joblessness than Nevada in April. And even Michigan saw its unemployment rate dip, from 14.1 percent in March to 14 percent in April.

The new numbers "are not a surprise" when you consider Nevada's employment mix, which goes heavy on residential building, commercial construction and discretionary spending on travel and entertainment, said Brian Gordon, a principal in local research and consulting firm Applied Analysis.

Take construction: At its June 2006 peak, the industry employed 148,800 Nevadans and accounted for roughly 12 percent of the state's jobs. By April, builders had slashed 86,100 positions from their payrolls, and construction had dipped to 62,700 jobs, or less than 6 percent of the work force. What's more, laborers are still receiving pink slips: Contractors cut 700 Nevada jobs in April, the employment department found.

The government sector pared 1,000 positions in April -- a number that's likely to rise after July 1, when fiscal 2011 starts and tighter budgets force leaner staffs, Anderson said.

Some sectors did manage to grow from March to April: The state saw 2,500 new jobs, mostly in retail and hospitality.

But year over year, job cuts visited virtually every major industry, including leisure and hospitality, manufacturing, finance, information technology and the combined category of trade, transportation and utilities. Adding jobs were education and health services, mining and professional and business services, which include law firms, accountants and architects, among others.

The local jobs base shrank 4.6 percent overall year over year, shedding 38,700 jobs from its April 2009 count of 836,100 jobs. The state's jobs pool contracted 3.5 percent, with 40,500 lost jobs out of an April 2009 total of 1.2 million positions.

Nationwide, employers added a net 290,000 jobs in April, the most in four years, the U.S. Department of Labor reported this month. The U.S. unemployment rate, though, rose to 9.9 percent as hundreds of thousands of job hunters -- feeling more confident about their prospects -- resumed or started searches.

Similar work-force growth happened in Nevada. The labor force rose by 18,400 people year over year in April, including 12,700 people in Las Vegas. That's an increase of 1.4 percent statewide and 1.3 percent locally.

The labor pool expanded as students, seniors, stay-at-home spouses and other demographic groups that traditionally don't take jobs outside the home began looking for work out of economic necessity, observers said.

In all, 193,000 Nevadans were out of work and looking for jobs in April. Las Vegas claimed 140,900 of the state's unemployed.

Official jobless numbers don't include discouraged workers who've quit job-hunting or part-timers who'd rather work full time. Include those groups, and joblessness in Nevada is likely well over 20 percent, experts have said.

Observers said Nevadans should expect the state's job market to slump at least through 2010.

Some categories, such as retail and hospitality, are showing smaller year-over-year job losses, which indicates that those sectors are stabilizing, Gordon said.

But the state will probably see unemployment "bounce around along the bottom" for several more months, he added, and employers will require fundamental improvement in the economy for several quarters before they're willing to invest in fresh personnel.

"Nationally, they'll want to see demand for tourism increase, which would suggest people are traveling more and seeking out Las Vegas as a destination," Gordon said. "Locally, they'll need to see more general consumer spending in the local economy and demand for housing and other goods and services."

Anderson wouldn't speculate on whether Nevada could overtake Michigan as the nation's worst employment market, and he said monthly data can vary substantially. May could very well bring a smaller jobless rate, he said.

Still, Nevada will continue to struggle in the near term relative to the rest of the country, and even as job losses lessen somewhat, job growth is unlikely before the end of 2010 because of the state's reliance on building and discretionary spending.

"That's the core of our economy, and it's going to take a while for those areas to recover," Anderson said.

The Associated Press contributed to this report. Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

CANDIDATES DISCUSS JOBLESSNESS AND HOW TO GET MORE PEOPLE BACK TO WORK

  “My thoughts are with the Nevadans who are struggling to find a job and the family members who share their frustration. I want them to know that I have been working hard to take steps to help create jobs so we can put more Nevadans back to work and I won’t stop until our state’s economy is back on track.”
— Sen. Harry Reid, D-Nev.

“I am very concerned about the thousands of Nevadans who are out of work through no fault of their own. This is an extremely tough time for them and their families. I remain committed to attracting new businesses to Nevada, especially in the area of renewable energy. I am also focused on seeking ways to encourage existing businesses in Nevada to expand.”
— Gov. Jim Gibbons

“Turning Nevada’s economy around and creating jobs must continue to be our top priority. Today’s unemployment numbers provide further evidence that we must continue to pursue policies to diversify Nevada’s economy by investing in renewable energy that will bring good jobs to our state.”
— Rep. Dina Titus, D-Nev.

“The latest unemployment numbers reflect how much Nevadans are hurting and how little Washington is doing to address the economy. We need to focus on lowering unemployment by reducing the tax burden on small business, the engine of our economy, and stop Washington’s out-of-control spending which will continue to weaken our already struggling economy.”
—Sen. John Ensign, R-Nev.

“My number one priority in Congress is to turn our nation’s economy around and get Nevadans back to work. Growing government, increasing the national debt, and raising taxes is not the answer to fixing our economy. Many of the government policies today are standing in the way of innovation, growth and economic recovery. Unfortunately, too many Nevadans are feeling the affects of these failed policies.”
— Rep. Dean Heller, R-Nev.

“This morning’s depressing figures are another reminder that Harry Reid’s priorities lie elsewhere. He is all-consumed with securing his own reelection, forgetting the daily struggles of jobless Nevadans. The recent unemployment numbers again indicate empty promises and continued neglect of Nevadans’ needs.”
— Sue Lowden, Republican U.S. Senate candidate

“Families continue to gather around the kitchen table deciding which bills they can pay and how to keep a roof over their heads. Until Washington realizes that increased regulation and taxes do not create an environment for job creation, our friends and neighbors are going to continue to suffer.”
— Joe Heck, Republican candidate for Congressional District 3

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Comments

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

1. Dirty Harry May 23, 2010 | 1:18 a.m. Report Abuse

   @ Beck's Fools Gold
   
   Excuse me, but what office is Mr. Beck running for? Beck isn't running this country, so who cares about Goldline? Besides, Goldline Inc. has an A+ rating from the Better Business Bureau, and they sell gold for 18% over cost. Most companies in this country sell products for more than their cost. It's called capatalism.

2. Jack.Webb May 22, 2010 | 10:47 p.m. Report Abuse

   Goldline, Inc. uses aggressive sales tactics, conservative spokespeople and rhetoric to sell over-priced gold coins to unsuspecting consumers.
   
   Goldline is associated with talk radio and Fox News host Glenn Beck, who has often mentioned it on his Fox show and radio program. Goldline is also sponsor of the radio show.
   
   Beck and other conservative spokespeople (among them Mark Levin and Fred Thompson) of use their shows to prey on the public's fears of inflation and socialist takeovers while actively promoting the purchase of gold coins as insurance against this purported government overreach.
   
   Simply put, Goldline is little more than a gold peddler posing as an investment advisor.
   
   Goldline grossly overcharges for coins and has formed an unholy alliance with conservative pundits to drive a false narrative that they are a good investment.

3. gehrig May 22, 2010 | 9:28 p.m. Report Abuse

   interesting that puerto rico is in the thread. were it to be jammed into the united states despite the p.r. citizens' choice, that's the same as the uniting of east/west germany. the west germans are still paying a tax surcharge besides the millions and millions already sent to the east to bring it out if poverty. that same poverty the "change" oaf would wish on the u.s.
   
   more parasites we don't need; seems we have enough in country already. and more to come if the oaf and harry osama enfranchise the "pre-citizens" [and their extended families waiting back home in the dirt floor huts, for the green light]

4. Jack.Webb May 22, 2010 | 6:35 p.m. Report Abuse

   "what is loos,Fred? wrote on May 22, 2010 06:19 PM:"
   
   A typo. You mean you didn't know? You see, this is the real world and typos, like cons and something else, happen.
   
   Why do cons cling to typos and pretend that pointing them out is an actual argument that they've won?
   
   A con mind is a terrible thing.

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