Some 1,700 people gather in early June at the Rio for a job fair sponsored by Harrah's Entertainment. Casinos, hotels and gaming businesses have 218,400 workers, up 1,600 in the past year. Photo by Ronda Churchill

CARSON CITY -- Unemployment in Nevada dropped slightly in May to a seasonally adjusted rate of 4 percent as businesses added 7,400 jobs during the month, the state reported Friday.

The unemployment rate is down from 4.1 percent in April, according to the Department of Employment, Training and Rehabilitation.

"The Las Vegas and Reno areas are producing new jobs at an impressive rate, with job growth rates of more than 5 percent in the state's two major urban centers," Gov. Kenny Guinn said in a statement.

Terry Johnson, director of the department, said it appears the spike in unemployment in April was due to temporary factors. March unemployment had been only 3.8 percent. Earlier this year, unemployment in the state fell to 3.6 percent, the lowest rate in more than 30 years. "Both the number of unemployed and the unemployment rate in each of the state's major labor markets fell in May and are below their March levels," Johnson said.

The unemployment rates are adjusted to reflect normal seasonal variations in the work force. Actual Nevada unemployment in May was only 3.7 percent, with 1,219,400 people holding jobs and 47,000 unemployed.

The Las Vegas areas unemployment rate was only 3.6 percent, down from 4 percent in April. The Reno area also had a 3.6 percent unemployment rate, down from 4.1 percent in April. Carson City's May unemployment rate was 4.4 percent and Elko's rate was 3.4 percent.

Nevada remains far below the national unemployment rate of 4.6 percent and the 4.9 percent rate in California.

Businesses in the state have added 63,600 jobs in the last year. Construction businesses have hired an additional 14,900 workers, bringing their Nevada work force to 147,700. Trade, transportation and utilities have hired 12,100 additional workers, bringing their total to 224,100.

Professional and business service companies have increased their work force to 156,600, up 13,200 workers in the last year. Casinos, hotels and gaming businesses have 218,400 workers, up 1,600 in the last year.

Governments in Nevada, including school districts, employ 151,400 workers, an increase of 4,500 in the last year.