MobileRJ | RSS TwitterTwitter FacebookFacebook E-mail Alerts
Home manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Wed Thu Fri Sat Sun Mon Tue

sponsored by
News
Nov. 20, 2009
Copyright © Las Vegas Review-Journal

Nevada jobless rate falls to 13 percent

By JENNIFER ROBISON
LAS VEGAS REVIEW-JOURNAL

Phangdy Manivong looks over posted jobs at the Nevada Job Connect in this 2008 file photo.
Photo by John Gurzinski.

Nevada's unemployment rate fell for the first time in four years in October. So why aren't economists and business observers smiling? Because the rosier statistics came from labor-force shrinkage rather than economic growth.

Nevada lost 21,000 members of its work force from September to October, and that 1.5 percent decline in the Silver State's labor base is why unemployment here fell from 13.3 percent to 13 percent, according to statistics from the state Department of Employment, Training and Rehabilitation. In Las Vegas, joblessness dropped from 13.9 percent to 13 percent, as 16,600 residents, or 1.6 percent of the labor pool, abandoned the work force.

Most Popular Stories
  • 'YOU DON'T BLOW A BUNCH OF CASH IN VEGAS ...': Obama remark reopens wound
  • NORM: Ad's Strip scenes raised eyebrows
  • LAUGHLIN EDGEWATER: Two dead in casino car crash
  • Shutting down the Ritz
  • Shutting down the Ritz
  • Former commander of USS Cole considers run against Reid
  • NORM: $1 million wager on Super Bowl approved
  • Tourist describes chaos as car plows into Laughlin casino, killing two
  • Tourist describes chaos as car plows into Laughlin casino, killing two
  • IMAGES FROM 1860S: Photos show historic Nevada
  • Fighter battles rare disease that shatters mixed martial arts dream
  • Flood advisory for Las Vegas Valley




    • The labor force contracted for two reasons: Discouraged workers have quit seeking jobs, so they no longer factor into the labor pool, and others who couldn't find positions in Nevada have left for better prospects in other states.

    The freefall in the state's jobs base did seem to take a break from September to October, hinting at potential stabilization in the labor markets, said Bill Anderson, chief economist for the employment department. The number of jobs in Nevada stayed at roughly 1.18 million from September to October.

    But even stable unemployment will mean sustained "severe hardship" for many Nevadans, because the state's economy is evening out with 75,100 fewer jobs than it had a year ago, Anderson noted. The Silver Stateу's jobs base has returned to its October 2004 levels, so the recession essentially wiped out five years of economic growth. Staying at that jobs count for an extended period of time could mean long-term unemployment for thousands of residents.

    Plus, unemployment statewide is still nearly double the 7.7 percent it was at in October 2008. It's also well above the national average of 10.2 percent. And if you add in discouraged workers who've stopped looking for jobs and part-timers who want full-time work, joblessness is closer to 20 percent.

    Other experts agreed that it's not yet time to celebrate.

    Sure, you can find encouraging data "if you look hard," said Jeremy Aguero, a principal in local research firm Applied Analysis.

    Hospitality declines weren't as steep as many expected, and the health-and-education category added jobs year over year.

    But big troubles remain, Aguero said. Eight percent of Nevada's work force is in construction, and nearly 50 percent of that industry is out of work. Also, Aguero sees no consistent month-over-month gains in hours worked, wages earned or jobs formed. Most ominous of all, a shrinking work force points to some out-migration — a worst-case scenario for a state economy and fiscal structure geared toward growth, Aguero said.

    "Testing the bottom is a first step in recovery, but it's much too early to make the call that that's actually what's going on," Aguero said.

    Construction and hospitality continue to post the biggest job declines.

    The state's construction sector peaked at 150,000 jobs in mid-2006, but dwindled to 83,700 positions in October. From September to October, the state's hospitality sector cut 2,000 positions, for a jobs base of 307,700. That's down 20,000 positions from a year earlier.

    Other major employment categories cutting positions year-over-year in October include information technology (down 5.4 percent), finance (down 3.3 perecent), professional and business services (off 5.4 percent) and local governments (down 5.7 percent).

    Education and health services, on the other hand, fared well, adding 3,300 positions year-over-year in October for a total of 99,500 jobs. State and federal governments also created jobs in Nevada, as did transportation and warehouse operations and metal-ore mines.

    Unemployment trends will be uneven in coming months, with some relatively strong periods interspersed with a contracting jobs base, Anderson said. Over time, though, unemployment is likely to tick upward. The employment department continues to project an average unemployment rate of 14.8 percent in 2010, with peak joblessness hitting in the first half of 2010.

    A wave of local resort openings could curb joblessness somewhat, a gaming analyst wrote in an e-mail today.

    Bill Lerner, a principal with consulting firm Union Gaming Group, noted that CityCenter, Cosmopolitan and the Hard Rock expansion will result in 25,000 new direct and indirect jobs in coming months. Those additional jobs by themselves could reduce unemployment by 1.8 percent, but Lerner noted that construction jobs lost upon project completions will erase some of those hospitality-sector gains.

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 53 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

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

    Joe Bama wrote on November 21, 2009 01:03 AM: Maybe this means a bunch of non smokers moved back to Kalifornia.


    Carson Newshound wrote on November 20, 2009 10:53 PM: It comes down to this. Education is more valuable than money. Without easy access to education young people don't have access to money. Yet Nevada continues to treat it's institutions of higher education as if they were some kind of "luxury" that people can boast they've donated to. Nevada's leadership is morally and intellectually bankrupt. They need to leave the state more often, go soak up the world, and bring home some of its best parts. If they don't, they're just creating a dismally stupid place called Nevada where every "political leader" drives with their rear view mirror.


    SmackDownHermitIs wrote on November 20, 2009 08:08 PM: HermitIs has been officially Smackdowned!


    HermitIs wrote on November 20, 2009 07:48 PM: HermitIs

    http://j.mp/5CCAHB


    hermit wrote on November 20, 2009 07:14 PM: HowCan how stupid are you? It was a Bush policy to not have conventions in Las Vegas. A typical twist of what Obama said by a RWN.


    VoteTo wrote on November 20, 2009 06:58 PM: 13% is unacceptable to me. I will vote to fire Harry (I can't wait to vote him out of office) and to fire Obama. Big Government isn't they answer because their only income base is to tax what few taxpayers are left. Get government out of the way and let the free enterprise system get Nevada back on track.


    HowCan wrote on November 20, 2009 06:55 PM: How can 13% unemployment be good news? The real story is that Harry and BO "blacklisted" Las Vegas and business is staying away -- as directed. How can 13% unemployment be good news?


    FED UP wrote on November 20, 2009 05:32 PM: "which means the recession has erased five years of expansion"

    Yet the government is running full force knowing this???? Start firing now and save face from having to say "we didnt see it comming and now have to raise your taxes in 2010"

    Wake up Nevada do not elect any politician that will not cut spending now!!!


    Macro Baby wrote on November 20, 2009 05:22 PM: To Sircules and those who keep bashing the statistics: Take a macroeconomics class and you will LEARN that it's not about how worthless the numbers are. Of course, it has taken into account the military personnel, self-employed, etc. It is just a basis to start somewhere, and is information collected by the Bureau of Labor and Statistics!

    "Nevada has no idea what its employment rate is." You simply have zip idea yourself about the principle of statistics, other than to sit there and say that something is worthless just because it is not the most accurate data.


    Sircules wrote on November 20, 2009 03:49 PM: Nevada's un-employment rate is statistically worthless and should stop being reported. It does not include military personnel nor self-employed; probably more than 100,000 people. This creates a falsely low labor pool number which increases the un-employment percentage. Moreoever, Nevada does seem to know how many people have stopped looking for work. Hence, the totality of the data is not correct. To be frank, Nevada has no idea what its employment rate is. There is no way to actually count the real number of workers and non-workers...


    Read All Comments