Unemployment rate dips in April

Nevada's economy continued to shuffle along in a probable recession as the state reported on Friday a 0.1 percent decline in unemployment last month.

The state's unemployment registered at 5.7 percent in April, one-tenth of a percentage point lower than in March, but still 1.1 percentage points higher than April of last year, according to the Nevada Department of Employment, Training and Rehabilitation.

Employment increased by 1,400 over March but is down by 5,800 from the April 2007 level.

"Data supports the idea that Nevada is likely in a recession," said Jeff Thredgold, economist for Nevada State Bank.

Nevada, California, Arizona and Florida led the country in growth between 2003 and 2006, he said.

"These high-flying states where the market got carried away are now all dealing with recession," Thredgold said.

"Nevada is kind of paying the piper for prior excesses in real estate," Thredgold said. Analysts are divided over whether the country is in a recession or merely a slow growth period.

Nevada labor economist James Shabi said the slight decline in unemployment since March is a lower bounce than normally seen in the spring, indicating the economy is soft.

By contrast, unemployment ran 4.1 percent statewide in April 2006. Since then, "it's been a pretty steady upward trend," Shabi said.

Thredgold pointed to strong statewide job growth in 2004-2006, slowing growth in 2007 and generally declining employment this year.

The unemployment rate in Las Vegas last fell below 4 percent in March 2006, when it was 3.9 percent, Shabi said.

The jobless rate in the Las Vegas area ran 5.5 percent in April, 1.1 percentage points higher than a year ago. Las Vegas recorded a 5.7 percent unemployment rate in January, the highest since July 2003, when the area was still reeling from the economic aftershocks of the Sept. 11 terrorists attacks of 2001, Shabi said. Despite the high unemployment, the long-term outlook for Las Vegas remains strong, Thredgold said, pointing to continued in-migration and job creation at casino resorts and mixed-use projects on the Strip.

The state's economy may recover by late this year or early next year, Thredgold said.

In Las Vegas, government job growth was strongest, up 4.2 percent over a year ago as local agencies hired the most new workers. Government employment often rises about this time of the year as students are hired for temporary jobs, Shabi said.

Job demand remains slack in the private sector.

Las Vegas construction employment fell 8.2 percent from the level in April 2007.

Professional and business services jobs dropped by 4.3 percent from the same month last year. Leisure and hospitality was off 0.5 percent from a year ago.

The Reno area jobless rate was 6 percent, down from 6.2 percent in March; Carson City was 6.5 percent, down from 6.9 percent in March; and Elko was 3.8 percent, down from 4.2 percent in March.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.