Trade deficit effect on Nevada has remained small

Kevin Rademacher

Thursday, Feb. 10, 2005 | 11:03 a.m.

While national numbers point to a swelling national trade deficit, recent figures indicate that Nevada has remained insulated from much of the trend.

The report -- authored by the Economic Policy Institute -- said that between 1989 and 2003 Nevada lost 6,541 jobs due to the trade imbalance with China. Only 10 states and the District of Columbia saw a smaller effect from the trade gap.

In terms of a percentage of total statewide employment, the report said that only five other states and Washington, D.C., fared better than Nevada's 0.60 percent of total jobs lost to the trade gap with China.

Bob Baugh, executive director of the AFL-CIO's Industrial Union Council, a coalition of 14 manufacturing unions, said just because Nevada has been largely insulated so far does not mean there is no cause for alarm.

He argued that Nevada's efforts to attract manufacturing companies will be hampered by the movement of jobs offshore, to nations such as China, Indonesia and India.

"All of the sudden you've got all these holes emerging," Baugh said. "This is a serious, serious crisis."

Somer Hollingsworth, chief executive of the Nevada Development Authority, agreed that the issue is a concern.

"Nevada, especially Las Vegas, is global now," he said. "What happens around the world affects us."

Still, Hollingsworth said that the loss of jobs overseas has missed Las Vegas, in large part.

"It's American companies that are moving over there," he said, adding that it's typically some of the largest American companies which have no local presence.

"If we get a division of a major conglomerate, we could well be affected by this trend," he said. "But so far what we've seen has been some very solid, smaller, privately owned manufacturers. I think we're in good shape so far."