Las Vegas unemployment rate rises again amid tourism slump

Las Vegas’ jobless rate ticked higher again last month amid a slump in tourism this year.

The Las Vegas-area’s unemployment rate was 5.8 percent in June, up from 5.5 percent in May, according to non-seasonally adjusted figures released this week by the Nevada Department of Employment, Training and Rehabilitation.

The local unemployment rate is lower than it was at the start of the year but has now pushed higher for the second consecutive month, from 5.2 percent in April.

Nationally, the unemployment rate was 4.1 percent in June, according to seasonally adjusted federal data.

Stock markets have largely been on the rise after plunging in April over fears of tariffs and their impact on the global economy. But President Donald Trump’s ever-shifting trade wars are still hanging over the U.S. economy, as consumers and businesses could face higher prices as a result.

Overall, the U.S. economy is “far from a recession” but is “losing steam,” according to a report Wednesday from Oxford Economics.

The economy will face a “stiffer test” in the coming months as tariffs increasingly affect inflation, disposable income and consumer spending, the consulting firm said.

‘Only get worse if costs jump again’

Wells Fargo Bank reported last week that the “costs of tariffs are starting to get passed on to consumers, albeit slowly.”

The Associated General Contractors of America cautioned last week that tariff hikes slated to take effect on Aug. 1 “threaten to drive up a wide range of construction costs that could further undermine demand for construction.”

“Rising construction costs and economic uncertainty are already causing some owners to put projects on hold, which will only get worse if costs jump again,” Ken Simonson, the association’s chief economist, said in a news release.

In casino-heavy Southern Nevada, the local economy is fueled by tourism, but visitor volume is down this year.

Around 16.5 million people visited Las Vegas this year through May, down 6.5 percent from the same five-month stretch last year, according to Las Vegas Convention and Visitors Authority data.

Casino analyst David Katz, of financial-services firm Jefferies, wrote in a report last week that Las Vegas is “bracing for a grindy summer.”

Summer deals

John DeCree, a casino analyst with CBRE Group, pointed in a recent report to lower visitation to Las Vegas from its two main international feeder markets, Mexico and Canada.

He also cited tariff threats and economic uncertainty that “could be weighing on leisure travel,” as well as rising costs in America’s casino capital that “could deter more value-oriented visitors” who are “key to the summer off-season.”

Las Vegas casino operators have rolled out a range of deals this summer — including free parking, lower room rates and waived resort fees — to draw visitors to their properties.

The price breaks are being offered amid not only a slump in tourism, but also growing frustration over resort fees, parking costs and other expenses that can make America’s casino capital a pricey place to visit.

Amanda Belarmino, a professor at UNLV’s William F. Harrah College of Hospitality, recently told the Las Vegas Review-Journal that the promotions are typical of summer.

But, she said, some would also argue that Las Vegas has become overpriced and that perhaps these deals “would be better seen as a course correction to attract a wider array of travelers.”

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