Wednesday, April 07, 2004
Copyright © Las Vegas Review-Journal

NEVADA ECONOMY: Job hunting? Try LV

Officials point to low unemployment in city, state as model for country

Accounting manager Steve Gold, left, and chief financial officer Dewey Hockemeyer at Purafilter 2000, a valley company that is expanding its operations. Photo by Ralph Fountain.

Steve Gold packed up his family and moved from New Jersey to Las Vegas in October.

Two months later, he accepted a job as an accounting manager with furnace filter manufacturer Purafilter 2000.

Dewey Hockemeyer was lured from Southern California to join Purafilter as the company's new chief financial officer.

"I wanted to be part of a success story," Hockemeyer said. "I've been part of bigger companies in the past, but I wanted to help build something special here."

Their stories illustrate one of the linchpins of the Southern Nevada economy -- job creation.

Purafilter 2000, a 14-year-old privately held company based in the southwest valley, announced in late February it will expand its local operations and will this year build a new combined plant and corporate headquarters near Rainbow Boulevard and the Las Vegas Beltway.

In doing so, the company also announced plans to expand its work force by at least 75.

Nevada officials proudly point to data showing the state's employment rolls continued growing even during the post-Sept. 11, 2001, downturn even as the latest national job creation numbers have stirred a fierce partisan debate over the strength of the recovery.

Employment figures show U.S. companies added more than 300,000 jobs in March -- the biggest gain since August 2000 -- even as the nation's unemployment rate rose to 5.7 percent from 5.6 percent.

Meanwhile, the unemployment rate in Nevada was at 4.4 percent and 4.6 percent for the Las Vegas area in February, the latest report available. In the Las Vegas area, more than 892,000 were employed in February, the Nevada Department of Employment, Rehabilitation and Training reports.

From March 2001, when the recession officially began, through January, Nevada companies increased their payrolls by 5.3 percent, the U.S. Department of Labor Bureau of Labor Statistics reports.

The bureau shows Clark County alone gained 26,500 jobs in the year ending in June. At the same time the United States lost 500,000 jobs.

Somer Hollingsworth, president and chief executive of the Nevada Development Authority, said there are two reasons behind the job growth.

"We have a pro-business attitude in Nevada that is attracting companies all over the country to our state. And when they check us out, they see we have an extremely qualified work force here," Hollingsworth said.

With roughly 5,000 people moving to the Las Vegas area every month, Hollingsworth said that figure alone illustrates a growing work force.

Not surprisingly, he said, the fastest-growing industries are construction, manufacturing, retail sales and the service sector. Health care and the temporary services are also seeing growth.

"We're also seeing a need for professionals working in technology, and experienced in every area of technology, from the basics of understanding the ins and outs of the personal computer on up to software development," he added.

Larry Ryan, the Southern Nevada head of the Nevada Manufacturers Association, agreed that manufacturing is growing. He said balancing new companies with expanding existing ones will keep manufacturing thriving in Nevada.

"The only way to expand the manufacturing base is to bring in more companies," Ryan said, adding that skilled electricians, machinists, welders, forklift drivers and mechanics are always in demand.

"If you are new in town and you possess these skills, chances are you will talk to a potential employer within a week," he said.

And during an election year with a focus on jobs and the economy, are Washington officials watching what's happening in the Silver State? Surely, said Jim Shabi, an economist with the state Department of Employment, Training and Rehabilitation.

"I don't think they can ignore it. Nevada is the fastest-growing state," Shabi said. "For a decade, we've been the fastest-growing state. This model cannot be copied."

But it appears some want to try.

Said Hollingsworth: "We've developed our 'baby.' Now other communities want a baby of their own to develop. No one else has done what we've done."

He also does not see the growth cycle slowing anytime soon. As the area's population continues to increase, job creation will remain steadily, Hollingsworth said.

"What you're seeing is a maturing of this community and diversification of the area's economy at work."