Rate of jobless tops U.S.

CARSON CITY -- Nevada experienced a higher-than-usual unemployment rate of 4.6 percent in June for the second consecutive month, remaining above the national average of 4.5 percent, a state agency reported Friday.

"The unrelenting slump in the housing market continues to be a major contributor to the labor market decline," said William Anderson, chief economist for the Department of Employment, Training and Rehabilitation.

"The state has experienced a loss of 5,200 construction jobs in the past year," he said. "Employment in Nevada has increased by 1.7 percent over the past 12 months, the lowest growth rate since September 2002 and barely above the 1.5 percent increase reported for the U.S. as a whole."

Both the national and state seasonally adjusted rates were unchanged from May.

The Las Vegas unemployment rate, which is not adjusted for seasonal fluctuations in the job market, was reported at 4.7 percent in June, up five-tenths of a percentage point from May. Reno reported a 4.4 percent unemployment rate in June, up two-tenths of a percentage point from May.

The yearlong slowdown in job growth was aggravated by the start of summer labor market volatility, Anderson said. Government employment, including the university and college system positions, fell by 5,000 in June. The number of unemployed people usually rises during this time of year due to teachers and other education staff reporting that they are not working during the summer months, Anderson said.

From September 2003 through June 2006, gains in construction sector employment added from one-half to 1 1/2 percentage points to the state's overall rate of job growth, he said. In the past 12 months, construction sector employment has declined by 3.5 percent. If construction jobs were excluded, employment growth in the state would be 2.4 percent over the past 12 months rather than the reported 1.7 percent.

"The state's mining regions present a more positive picture," Anderson said. "Gold continues to trade above $650 per ounce, and copper has rebounded by more than $1 per pound to approximately $3.50 since early February. Labor markets remain tight in several mining counties, and qualified workers are hard to find."

Elko, Humboldt, Lander and White Pine counties each posted an unemployment rate below 4 percent in June. While monthly industrial employment figures are not available for the rural counties, it should be noted that Eureka County posted 18.5 percent job growth from the fourth quarter of 2005 to the fourth quarter of 2006, Anderson said.

"The current themes -- a weak housing market, a strong mining industry, modest overall growth -- are likely to continue for the remainder of 2007 and into 2008," he said.

While the unemployment rate might seem problematic, agency Director Larry Mosley said Nevada's economy is still holding strong compared to the rest of the nation.

"While the statistics do show an increase in the number of people unemployed, there is still reason to remain positive," he said.

"A number of commercial construction projects are on the horizon that will pour a tremendous amount of work opportunities into the labor market. Nevadans should remain hopeful that the prospect of obtaining employment will eventually improve," Mosley added.

Mosley said the gaming industry should get a boost from the Palazzo opening in late 2007 and the Encore at Wynn Las Vegas a year later.

He said 2009 should be a blockbuster year with the opening of Project CityCenter and other gaming properties, and Echelon Place will follow in 2010.