No change urged in unemployment tax

Tuesday, Oct. 17, 2000 | 12:35 p.m.

The state Employment Security Council recommended keeping the current 1.3 percent rate Monday after analysts predicted continued economic health in 2001. The rate will be finalized at a Nov. 21 division hearing.

The actual tax rate paid by employers varies from 0.25 percent to 5.4 percent, depending on how frequently their employees get unemployment compensation.

About 44 percent of the companies in Nevada get the lowest rate because they never or seldom lay off workers. The tax is paid on the first $20,300 of each worker's annual wages.

With a 1.3 percent tax rate, the state projects an unemployment trust fund will increase about 10 percent to $550 million by the end of 2001. Jobless compensation checks are drawn on the trust fund.

Analysts predict the state's jobless rate, which has averaged 3.8 percent this year, will hit 4.0 percent in 2001 and 4.2 percent in 2002. Job growth should be about 4.5 percent in 2001, higher than most states.

But analysts also warn that the robust economy could tumble if a Middle East crisis leads to a rapid climb in oil prices.

Nevada's service industry jobs are expected to show the fastest growth rates in 2001 - between 6.5 percent and 7.5 percent for amusement and recreation attendants, security guards, card dealers and maids.

But like other states, the jobs in most demand are those with computer backgrounds. There's a need for 11.4 percent more computer support specialists and 11.2 percent more system analysts.