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May. 21, 2005
Copyright © Las Vegas Review-Journal


STATE ECONOMY: Jobs still abundant in Nevada

Strong April data attributed to construction, Wynn resort

By JOHN G. EDWARDS
REVIEW-JOURNAL





Click image for enlargement.
Graphic by Mike Johnson.

Nevada continued to lead other states in job growth in April as construction activity kept surging and the opening of Wynn Las Vegas helped hotel-casino job totals approach record levels.

The state's seasonally adjusted unemployment rate edged up to 4 percent from 3.9 percent a year ago, a survey of households by the state Department of Employment, Training and Rehabilitation shows. That represents 48,300 Nevadans out of work in April.

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But the department's monthly survey of employers showed that the number of jobs statewide increased 6.4 percent from a year ago to 1.2 million. The Silver State's job growth leads the nation. Arizona, the second-ranked state, had 3.8 percent job growth.

In the Las Vegas area, seasonally adjusted unemployment in April plunged to 4 percent from 4.6 percent a year ago. The survey of Las Vegas employers showed that the number of jobs increased 7.4 percent to 863,200 in the metropolitan area. The jobless total for Las Vegas was 33,500.

The national unemployment rate was 5.2 percent, and California's jobless rate for March was 5.4 percent.

The Reno-Sparks area had its unemployment level drop to 3.6 percent in April from 4 percent a year ago. The number of jobs climbed 4.4 percent to 215,000, the state said.

Since the terrorist attacks of Sept. 11, 2001, construction, not the casino industry, has led the state into a recovery, said Jim Shabi, an economist with the Nevada employment department.

"It was the residential construction industry that drove most of it," Shabi said. "The gaming industry has traditionally been the leader, and this time it's the follower."

The results for April reflect the continuing residential construction boom of the past three years, but the opening of Wynn Las Vegas was another plus, he said.

"This boost from hiring at Wynn Las Vegas places the state's hotel-casino employment within 7,800 jobs of its all-time high" just before the 9-11 attacks, Gov. Kenny Guinn said.

The state gaming industry's employment rose by 3.3 percent between January 2002 and March, while total employment grew by 17.5 percent, employment department director Birgit Baker said.

Shabi expects the Wynn effect will continue as older casinos fill vacancies created when employees left to join Wynn Las Vegas, which opened April 28.

An increase in mortgage loan interest rates or a continuation of housing appreciation could reduce the number of potential buyers who can afford homes in Nevada, but Shabi believes retirees from other states, particularly California, will continue to boost demand for housing.

"I don't see anything right now that's going to cause the economy to come to a screeching halt," he said. "(However) the rate of growth will slow (at some point)," he said.

In the Las Vegas area, employment services showed the biggest percentage increase in jobs, 26.9 percent over April last year. Corporate management jobs jumped 18.1 percent. General merchandise and clothing stores added 8.6 percent more workers since April 2004.

Hotel and gaming employment was up 5.6 percent.




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