Saturday, June 21, 2003
Copyright © Las Vegas Review-Journal

Nevada's jobless rate slips in May

Officials say small decline suggests economic improvement in state

Click above for enlarged image. Graphic by Mike Johnson.

CARSON CITY -- Nevada's jobless rate dropped one-tenth of a percentage point in May to 5.4 percent, suggesting some modest economic improvement, state officials reported Friday.

"The May unemployment figures signify at least temporary improvement in Nevada's economy, but it is too early to tell if this is the start of a favorable trend," Gov. Kenny Guinn said. "It is uncertain that new graduates, teachers and students will be able to find work this summer with job creation well below pre-2001 levels."

The state's seasonally adjusted unemployment rate is seven-tenths of a percentage point lower than the national rate of 6.1 percent, and 1.2 percentage points lower than California's 6.6 percent unemployment, according to the data released by the Department of Employment, Training and Rehabilitation.

Nevada has consistently come in below the national average during the nation's period of economic instability.

Guinn cautioned that despite Nevada's continued population growth, the lack of growth in the labor force may be an indication that some people have given up looking for work. The unemployment figures could turn upward again as potential new workers enter the labor market, he said.

Myla Florence, director of the department, said: "The news on unemployment rates is positive this month, but a one-tenth of a percentage point move in the rate is statistically insignificant.

"Moreover, the number of weeks people are collecting unemployment benefits remains high," she said. "The federal government's extension of unemployment benefits will help some individuals, but the economy needs to grow before they can return to full participation in the labor market."

The department's labor market analysts estimate that during May, the Las Vegas metropolitan statistical area, which includes Nye County and Mohave County in Arizona, had a nonseasonally adjusted unemployment rate of 5 percent, down five-tenths of a percentage point over the month and three-tenths of a percentage point lower than a year ago.

Washoe County's nonseasonally adjusted May jobless rate is estimated at 4.1 percent, down six-tenths of a percentage point over the month, and three-tenths of a percentage point lower than May a year ago.

In the Carson City labor market area, which includes Douglas, Lyon and Storey counties, unemployment was reported at 5.7 percent, down one percentage point over the month and one-tenth of a percentage point higher than May last year.

The Elko labor market area, which includes Eureka County, reported unemployment at 4.8 percent, a 1.5 percentage point drop over the month, and one-tenth of a percentage point lower than May 2002.

Preliminary wage and salary employment estimates for May reveal over the year job gains in all but two employment sectors. The information sector, which includes telecommunications, reports a loss of 1,200 jobs over the year, and natural resources and mining lost 200 jobs.