From left, 46-year-old Fausto Razo and 18-year-old Emily Jacobson scan job listings Monday at Nevada JobConnect. Nevada unemployment reached 4.4 percent in December. Photo by Sara Tramiel/Review-Journal Click image for enlargement. Graphic by Mike Johnson.

Nevada's unemployment rate has risen to its second-highest level in two years, the state's Department of Employment, Training and Rehabilitation said Monday.

Joblessness in the Silver State reached 4.4 percent in December, up from 4.2 percent in November, the department reported.

The national unemployment rate held steady at 4.5 percent from November to December.

Nevada's unemployment rate was 3.8 percent in December 2005. It reached a two-year high in July of 4.5 percent.

Jim Shabi, an economist with the Department of Employment, Training and Rehabilitation, said the state's higher unemployment rate was "not a major concern."

"We're on the downward slope of the business cycle," Shabi said. "The business cycle peaked in 2005. We had two years of phenomenal growth in housing, and the Wynn Las Vegas opened (in 2005). Job growth in Las Vegas was in the 7 percent neighborhood for two consecutive years, and now we're seeing a moderation toward 5 percent job growth. That's still nearly four times the national average."

The December jobless rate in Las Vegas was 4.2 percent, up from 4 percent in November. Unemployment in Reno was 3.9 percent, up from 3.7 percent in November. Unemployment in Elko was 3.8 percent, compared with 3.7 percent a month earlier. Carson City posted the largest jump in joblessness, from 4.6 percent in November to 4.9 percent in December.

State officials said the housing slump, home builders in Clark County pulled 63.8 percent fewer construction permits in November than they did in November 2005, according to SalesTraq, and the Nov. 1 closure of the Stardust contributed to Nevada's higher unemployment rate at year's end.

Department Director Terry Johnson said it was too early to determine whether the higher state minimum wage, which rose from $5.15 to $6.15 an hour on Nov. 28, and the week-old smoking ban have affected unemployment rates in Nevada.

The department is building research models that would help statisticians and economists determine whether unemployment claims are coming from minimum-wage workers. And it will take several months for the new base pay's effects to trickle through the economy, Johnson said.

Johnson noted that the department recorded a "small uptick" in the number of people employed in the food-services and bars category in December.

"Perhaps it's too early to draw substantial conclusions, but it's possible there may be an increase in jobs at (bars and restaurants)," Johnson said. "It's possible there are people who might frequent an establishment more because it's a nonsmoking environment, and that could make a positive contribution (to job formation)."

Though unemployment increased in December, Johnson called Nevada's overall job-creation rate "remarkable."

The state's businesses added 4,600 jobs to the Nevada economy, 200 more positions than they created in November.

Johnson noted that the state's job-creation rate in December was 4.8 percent, compared with 1.4 percent nationwide. Job growth in California is even lower, at 1.1 percent, Shabi added.

"On the whole, there's more good news than bad news," Johnson said. "Nevada still creates jobs at three times the national average. That's the basis of our optimism heading into 2007."

More jobs don't always translate into lower unemployment, because markets with substantial employment growth attract more new residents and job-seekers than their slower-growing counterparts.

"Thousands of people move to Nevada monthly hoping to take advantage of Nevada's booming job market," Johnson said. "Those who don't find work contribute to the unemployment rate."

Gov. Jim Gibbons said in a statement that Nevada's overall employment outlook remains solid.

"We can assure businesses and workers that Nevada's job market is strong and that we are drawing on all available resources to offer job seekers training and assistance in finding gainful employment," Gibbons said. "Ensuring a healthy workforce for Nevada is of great importance to my administration."

The department's numbers show that elementary-school teachers, general managers, accountants, gaming dealers, registered nurses, waiters and cashiers are among the state's most in-demand workers.

Shabi said expansion in the resort and commercial sectors should offset any job loss resulting from a dip in home building. With multibillion-dollar projects under way in Las Vegas, including MGM Mirage's Project CityCenter and new hotels by Wynn Resorts Ltd. and Las Vegas Sands Corp., Shabi said he's expecting a "very strong" state and local economy in 2007.

"Five percent job growth is still very impressive," Shabi said. "Most places would kill for that."