Saturday, August 21, 2004
Copyright © Las Vegas Review-Journal

STATE ECONOMY: Nevada's jobless rate climbs

Guinn says July increase not true indication of state's economic strength

A heavy-equipment operator works Thursday at a construction site on Lake Mead Drive near Torrey Pines Drive. Nevada's construction industry added 1,500 jobs in July, a report says. Photo by K.M. Cannon. Click image for enlargement. Graphic by Mike Johnson.

CARSON CITY -- Nevada's jobless rate jumped two-tenths of a percentage point to 4.4 percent for July, but state officials said Friday the state economy continues to generate jobs at a record pace.

Nevada's seasonally adjusted unemployment rate in July remains 1.1 percentage points lower than the national average.

"The slight rise in Nevada's unemployment rate seems to be temporary, because the underlying economy remains strong," said Gov. Kenny Guinn. "The Nevada business community created 6,000 private sector jobs in July and more than 10,000 in the past two months. Nevada has produced jobs at a rate that is four times higher than the national average since July 2003."

Birgit Baker, director of Nevada's Department of Employment, Training and Rehabilitation, offered an explanation for the increase in the unemployment rate.

"The rise in the unemployment rate is due primarily to the end of the school and college academic year and the influx of students into the labor market," she said. "Nevada's labor force increased by more than 26,000 since May, and not all of the prospective workers could be absorbed that quickly."

The department's labor market analysts estimate that during July 2004, the Las Vegas Metropolitan Statistical Area's nonseasonally adjusted unemployment rate was 4.6 percent, up one-tenth of a percentage point over the month and 1.2 percentage points lower over the year. The area encompasses Nye County and Mohave County in Arizona.

Washoe County's nonseasonally adjusted July jobless rate was estimated at 3.8 percent, unchanged over the month and six-tenths of a percentage point lower than a year ago.

In the Carson City labor market area, which includes Douglas, Lyon and Storey counties, unemployment was reported at 4.9 percent, down two-tenths of a percentage point over the month, and one percentage point lower than July a year ago.

The Elko labor market area, which includes Eureka County, reported unemployment at 4.1 percent, unchanged over the month and 1.1 percentage points lower than a year ago.

A breakdown of hiring by specific industries showed the casino-related leisure and hospitality industry was up 1,300 from June to July; while government employment was down 6,900.

Mining was up 100; construction was up 1,500; manufacturing was up 200; trade-transportation-utilities was up 1,100; information-telecommunications was down 100; financial activities hiring was up 400; professional and business services hiring was up 1,700; and education and health services hiring was down 300.

The Associated Press contributed to this report.