Unemployment hits 7.1 percent in August

By Cy Ryan

Friday, Sept. 19, 2008 | 10:13 a.m.

CARSON CITY – Unemployment in Clark County climbed to 7.1 percent in August, its highest mark this year with an estimated 70,990 people jobless.

Statewide, the unemployment rate also was 7.1 percent during the month, a 23-year high.

The state Department of Employment, Training and Rehabilitation reported today that it expects the number of workers this year to fall by 1.1 percent from 2007.

Department economist Bill Anderson said the factors contributing to the jump in joblessness are the real estate downturn, the credit crisis and high energy costs.

“The credit crisis has gripped Nevada and sent us into, arguably, the most severe downturn in memory,” he said. “Housing market woes have been followed by financial stress affecting commercial development. In addition to the real estate and commercial development correction, travel costs are inhibiting state visitation.”

The department reported there were 932,230 employed in Clark County in August, the lowest number since March. The number of workers on construction jobs dropped by 9.2 percent to 94,900 in August in Clark County.

Employment in the hotels and casinos fell by 0.3 percent to 173,000 workers in Southern Nevada.

Anderson said there is population growth in Clark County but “this leads to a constant increase of the labor pool without a corresponding increase in jobs, so the unemployment rate will rise.”

Gov. Jim Gibbons said the high employment rate reinforces his belief that now is not the time to raise taxes which “would just increase the burden on businesses that are already struggling to meet payroll.”

“Raising taxes now would just lead to more layoffs and hamper Nevada’s economic recovery,” the governor said.

While employment is stagnant or down in private industry in Clark County, the number of government jobs rose 6.1 percent to 95,400 in the month-to-month comparison. Part of that is due to the hiring of teachers as the schools get ready to open.

Statewide, Nevada’s 7.1 percent rose “significantly” from July said the department. There were an estimated 97,700 persons out of work or 3,000 more than in July.

While Clark County posted a year high of 7.1 percent, some rural counties recorded worse results. Nye County registered a 9.9 percent unemployment rate and Lyon County had 8.8 percent.

Washoe County had a 6.6 percent rate, its highest of the year. And Carson City reported a 6.8 percent rate, its highest in the last four months.

Statewide, the department said “construction is feeling the biggest hit as job levels have declined approximately 10 percent so far in 2008.” Financing and insurance, in addition to real estate, rental and leasing, are other sectors “experiencing significant contraction.”

The agency is projecting a 0.3 percent increase in employment next year and then a growth of 1.8 percent in 2010.

Cy Ryan may be reached at (775) 687 5032 or [email protected].