Las Vegas jobless rate among highest in US again as tourism slumps

With tourism slumping this year, Las Vegas’ jobless rate was again among the highest in the country for big metro areas last month, new data shows.

The Las Vegas-area’s unemployment rate in July, 6 percent, was tied for third highest in the nation among the 50-plus metro areas with at least 1 million people, according to the U.S. Bureau of Labor Statistics.

Southern Nevada’s jobless rate was the same as in the Los Angeles area. The second highest, in Riverside, California, was 6.4 percent, while Fresno, California, topped the list at 8.6 percent, the bureau reported, using non-seasonally adjusted data.

Honolulu’s jobless rate, 2.5 percent, was the lowest.

In June, Las Vegas’ unemployment rate was third highest among big metro areas, lower than only Riverside and Fresno.

Locally, the jobless rate is still lower than it was a year ago. But Southern Nevada’s casino-heavy economy has been hitting the brakes lately as fewer people take Vegas vacations and consumer spending tumbles.

Around 19.5 million people visited Las Vegas this year through June, down 7.3 percent, or a drop of more than 1.5 million people, from the same stretch last year, according to the Las Vegas Convention and Visitors Authority.

Southern Nevada relies heavily on outsiders traveling here to spend big eating, drinking, gambling, partying and going to shows and conventions to fuel the economy. But amid a series of financial headwinds — and as President Donald Trump’s trade wars spark widespread economic anxiety — fewer people are visiting America’s casino capital.

There is also growing frustration over resort fees, parking charges, food and drink costs, and other expenses that can leave visitors with sticker shock and make Las Vegas a pricey place to visit.

Casino operators and others have rolled out price breaks this summer to boost business. But if someone feels less secure in their finances or future job prospects, not taking a trip to Vegas can be an easy way to save cash.

Andrew Woods, director of UNLV’s Center for Business and Economic Research, recently said that he hasn’t seen any major layoffs in Las Vegas lately and that while the economy is slowing, it seems to be holding up.

But he noted the region can be a bellwether for consumer habits because of its heavy reliance on discretionary spending.

Overall, the leisure and hospitality sector accounts for 27 percent of Southern Nevada’s workforce, compared with 11 percent nationally, federal data shows.

Woods noted that people are thinking twice about how they’re spending money and where they’re traveling. He also said that Las Vegas’ economy tends to get hit before other markets.

If the U.S. economy weakens a lot, Las Vegas will feel it first and recover last, he said.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342.