Monday, March 1, 1999 | 8:38 a.m.
Reno-area resorts employed 500 fewer people in 1998 than 1997 marking the second straight year of a job loss in the gambling sector, according to figures provided by the Nevada Department of Employment Training and Rehabilitation.
The Riverboat and Holiday hotel-casinos closed late last year to put about 550 people out of work. They're among six downtown Reno casinos to shut down over the last four years.
"There are significant long-term threats (to Reno's gambling-dependent economy)," said John Mitchell, an economist with U.S. Bank in Portland, Ore. "I believe Reno is more vulnerable (than Las Vegas) to the type of gaming in Oregon or California."
Overall, Washoe County added 4,500 jobs in 1998 for 2.5 percent growth over 1997. Until last year, the county's annual job growth had not dropped below 3 percent in five years.
"It's not bad," Mitchell said. "But it's not what you've been used to. The growth is tailing off."
Some local officials question the accuracy of the figures, citing the region's aggressive program to diversify its economy.
"With all these companies moving in here, I can't understand why these figures aren't higher," said Chris Barrett, who manages Sierra Pacific Power Co.'s economic development arm.
But most officials concede the local economy is expanding at a slower rate than the mid-1990s when the county's job growth topped 5 percent.
They attribute the slower pace of growth partly to a drop in the number of California businesses relocating to Nevada.
California accounted for 40 percent of all companies moving to Nevada five years ago, but now accounts for 25 percent, said Bob Shriver, executive director of the Nevada Commission on Economic Development.
Nevada officials said the trend is due to California's economic recovery and adoption of aggressive incentives to retain companies.
"California is getting real competitive," said Patty Wade, co-owner of a Fernley industrial park. "We will always have some natural advantages, but they have done a real good job of offering incentives."
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