Nevada jobless numbers increase

Wednesday, Jan. 23, 2002 | 10:52 a.m.

SUN STAFF AND WIRE REPORTS

Unemployment in December inched up to 6.6 percent in Nevada, the highest level in the last eight years as the terrorism-caused travel and tourism slowdown continued to depress economic activity, the state reported today.

But a new forecast said tourist destinations like Las Vegas and Florida should be further along in recovering from the after-effects of Sept. 11 by this summer.

Researchers at Economy.com, an economic-consulting firm, reported that a revival in tourism would likely be the second phase of an overall recovery of the U.S. economy, preceded only by growth in the manufacturing sector.

"The recession will end when the Midwest and industrial South stop hemorrhaging jobs," said Mark Zandi, chief economist for Economy.com, who added the U.S. economy won't fully return to its pre-Sept. 11 levels until industries such as technology and tourism improve.

The report said Florida's tourist sites have already shown some signs of recovery as more Americans return to air travel and predicted Las Vegas would also see increases in visitor volume this summer. The technology sector would likely bounce back this fall, followed by financial centers like New York City, Zandi said.

In Nevada, the state Employment, Training and Rehabilitation Department reported today there were an estimated 64,500 people out of work last month, compared to 39,500 in December 2000.

Last week, the number of new claims for jobless benefits declined to 5,530, down from the 5,841 filed for the week ending Jan. 11.

The state Division of Employment Security paid $9.4 million in benefits last week, about $100,000 less than the week before.

The state's 6.6 percent jobless December rate was higher than the nation's 5.8 percent and California's 6 percent rate.

The department said unemployment in the Las Vegas metropolitan statistical area fell from 6.6 percent in November to 6.4 percent in December during the holiday shopping season. The area, which includes Clark and Nye counties in Nevada and Mohave County in Arizona, had an estimated 52,700 people out of work, about 1,600 less than in November.

Total employment statewide reached 1,068,700 in December, up .7 percent from the same month of a year ago. But the number of jobs in the hotel and gaming category fell by 3.8 percent in the year-to-year comparison; manufacturing was off .9 percent and transportation and public utilities inched down 1.2 percent.

The department said construction employment grew 1 percent in the year-to-year comparison; trade employment was up 2.9 percent and government employment rose 2.6 percent.

The department said total jobs in the Las Vegas area inched up .7 percent from December 2000 to 787,200 last month.

However total employment in the hotel and casino industry in Southern Nevada dropped 4.2 percent to 185,500 jobs; mining was off 5.6 percent and manufacturing dropped .4 percent.

Total trade employment rose 2.9 percent from December 2000; construction was up .7 percent and government employment increased 3.2 percent in the Las Vegas statistical area.

Washoe County's jobless rate rose from 4.2 percent in November to 4.6 percent in December with an estimated 8,700 people out of work. Total employment reached 200,500, up 1.6 percent from a year ago.

In the Carson City labor market area (Carson City, Douglas, Lyon and Storey counties), unemployment jumped from 5.9 percent in November to 6.2 percent in December with an estimated 3,670 people jobless. Total employment increased 5 percent from December 2000 to 55,190 in December 2001.

The department reported unemployment in Elko and Eureka counties increased from 4.9 percent in November to 5.3 percent in December with 1,040 people out of work. Total employment in the year-to-year comparison dropped 5.9 percent to 18,620.