Nevada jobless rate falls slightly

Friday, June 20, 2003 | 11:10 a.m.

CARSON CITY -- Unemployment fell slightly to 5.4 percent in Nevada in May, but Gov. Kenny Guinn today said it's too early to tell if this is the beginning of an upswing in the state's economy.

The state Department of Employment, Training and Rehabilitation reported today that the seasonally adjusted rate was one-tenth of a percentage point lower than in April. It was below the national rate of 6.1 percent and California's rate of 6.6 percent.

There were an estimated 55,000 people out of work, down 4,900 from April.

Guinn said the May jobless rate shows "at least temporary improvement in Nevada's economy, but it is too early to tell if this is the start of a favorable trend.

While Nevada's population is increasing, Guinn said the lack of growth in the labor force may be an indication that some people have given up looking for work. He said the jobless figures could turn upward again as new workers enter the labor market.

Total employment reached 1,068,700, a 1.3 percent gain from a year ago.

Department Director Myla Florence said the one-tenth of a percentage point decline in the jobless rate is "statistically insignificant."

"The number of weeks people are collecting unemployment benefits remains high. The federal government's extension of unemployment benefits will help some individuals, but the economy needs to grow before they can return to full participation in the labor market, " she said.

The department said the Las Vegas metropolitan statistical area that includes Clark and Nye counties in Nevada and Mohave County in Arizona posted an unemployment rate of 5 percent, down from 5.5 percent in April. The state jobless numbers are seasonally adjusted but the local numbers are not, resulting in greater local swings.

Total employment in the Las Vegas area reached 804,700, a gain of 1.5 percent compared to a year ago in the same month.

Hotel and casino employment in the Las Vegas area registered a slight gain of 0.1 percent to 164,400; construction was up 2.2 percent to 77,800 jobs; manufacturing remained static at 24,200 employed; trade inched up 0.6 percent to 141,900 and government grew 4.8 percent to 91,600 employed.