Click image for enlargement. Graphic by Mike Johnson.
CARSON CITY -- Nevada's unemployment rate rose slightly to 4.2 percent from 4 percent in October but remains below the national rate of 4.4 percent, a state agency reported Monday.
Nevada's seasonally adjusted rate rose two-tenths of a percentage point last month while the national rate fell by the same amount, a report by the state Department of Employment, Training and Rehabilitation shows.
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The rate in Las Vegas in October was 4 percent, in Reno it was 3.6 percent, in Carson City it was 4.4 percent and in Elko it was 3.5 percent.
Officials point to the housing slump as a partial reason for the slight increase. The construction industry reported fewer jobs in October after months of strong employment gains.
"We've been hearing for a while that Nevada's housing market was losing momentum," department director Terry Johnson said. "It's not surprising that the unemployment rate has been adversely affected. This slight increase, however, is not reason for alarm. Nevada's unemployment rate remains below the national average and employers are still adding jobs at a remarkable rate."
Gov. Kenny Guinn said the increase isn't surprising given the time of year and the state of the current housing market.
"Nevada is still in good shape. We're still adding an impressive number of jobs and have a remarkable amount of commercial construction on the horizon," he said in statement. "Even with residential construction slowing down, Nevada's job force continues to grow at a fast pace, thus creating the need for new housing," he said.
Another reason cited for the increase in unemployment is the end of Nevada's tourism season. The leisure and hospitality industry reported fewer jobs, which reflects the normal seasonal trends.
The construction industry, the primary driver of Nevada's employment growth, varied significantly from the statewide trend in October. The construction industry added an average of 2,000 jobs per month from February through September, continuing the growth trend seen in 2004 and 2005. However, the October data may signal that trend's end. Construction employment fell by 700 jobs statewide in October.
Though residential construction is slowing, the commercial construction industry remains robust, Johnson said. With major projects slated throughout the state, construction workers can reasonably expect their skills to be in high demand, he said.
The hotel-casinos and gambling sector have grown modestly since Wynn Las Vegas opened in April 2005, Johnson said. But Palazzo at The Venetian, Encore at Wynn Las Vegas, Project CityCenter and Echelon Place are just a few of the projects that will boost Nevada's largest industry, he said.
The agency also said two ballot questions approved by voters Nov. 7 could potentially affect the future labor market.
Its Research and Analysis Bureau will be watching to see whether taverns that serve food begin to lay off kitchen workers in favor of keeping gaming machines and bar patrons who smoke. Question 5 forbids smoking in establishments that serve food.
The bureau will also try to measure whether employers will add fewer new jobs because of Question 6, which raised the minimum wage by $1 to $6.15 an hour.
"It's too soon to predict what will happen," Johnson said. "The smoking measure and increase in minimum wage are two issues we will be looking at very closely."
