Jobless rate rises despite ample new jobs

Friday, Nov. 26, 1999 | 9 a.m.

The October jobless rate, which rose from 4.2 percent in September, compares to 4.1 percent nationally in October and 4.8 percent in California.

Carol Jackson, director of the Department of Employment, Training and Rehabilitation, said Wednesday's figures show the number of people working in Nevada increased by 5.1 percent, or 48,200 in the last year. In the Las Vegas area, the job growth rate was 6.4 percent.

"Job creation in Nevada continues at a respectable rate," Jackson said. "Even Reno's job growth is a solid 3.4 percent over the year."

In the last year, service industries have added 20,200 workers and trade industries 12,000 workers.

But the number of mining jobs has dropped by 1,400 in the last year because of layoffs and a downturn in prices.

Still, the Elko area had an unemployment rate of 4 percent in October, up only slightly from the 3.9 percent rate a year ago.

Jackson said the rural areas see the pinch of mining layoffs, but not all of those are reflected in the unemployment rate because of generous severance packages many miners received.

In October, the unemployment rate in Reno was just 2.7 percent, down from 2.8 percent in October 1998, while the metropolitan Las Vegas area had an unemployment rate of 4.3 percent, up from 3.5 percent a year ago.

Karren Rhodes, a spokeswoman for the employment department, acknowledged that actual unemployment rates for all parts of the state are lower than the statewide 4.4 percent seasonally adjusted rate.

But she said the department must seasonally adjust rates because of orders from the Department of Labor Statistics. The seasonal adjustments provide a better indication of the unemployment in the state than the actual monthly rates, she said.

The adjustments reflect seasonal changes by companies, such as construction firms and the gaming industry, that often lay off workers during slow times each year, as well as hiring increases by retail stores that employe a lot of extra workers during the Christmas buying season.

"In the winter, some construction workers in the north are laid off because of cold weather," Rhodes said. "Casinos also traditionally have a 30-day to 60-day slump time in the late winter."

On the other hand, she said some retail stores can't find enough extra workers for this Christmas season because of the overall low unemployment in the state.