Las Vegas jobless rate falls as labor force shrinks

By Cy Ryan

Thursday, Dec. 17, 2009 | 7:10 a.m.

CARSON CITY – Unemployment in Clark County declined in November to 12.1 percent, the result of a smaller labor force as fewer people search for jobs. It was the 11th consecutive month of double-digit joblessness in Southern Nevada.

There were an estimated 119,000 job seekers in the Las Vegas-Paradise area, down from October’s 124,700, which had a 13 percent unemployment rate.

While it could appear this is a sign the recession is easing, the state Department of Employment, Training and Rehabilitation said it isn’t as rosy as it looks.

Department economist Bill Anderson said, “Unfortunately, a more detailed review of the component of the unemployment rate reveals a troubling trend.

“Primary amongst them is the decline in the state’s labor force,” he said. It fell for the second straight month, meaning about 13,900 workers “either left the state or were too discouraged to seek employment."

Unemployment in Clark County continues to be the highest of the metropolitan areas of Nevada. But Anderson said the rate in Las Vegas declined by nine-tenths of a point, the largest one-month drop in the county on record dating back to 1990.

The department reported unemployment statewide dropped from 12.9 percent in October to 12.3 percent with an estimated 161,400 people jobless in November. The nation’s jobless rate was 10 percent.

Anderson said Nevada’s labor market “is worse off than originally estimated.”

The department said there were 148,300 employed in the Clark County hotels and casinos, down from a revised 151,000 in October.

Anderson said it’s no shock that the number of hotel-casino jobs has fallen. The troubles in the nation’s tourism industry are well documented, he said.

“Nothing says discretionary spending like a trip to Las Vegas, so when Nevada’s economic struggles began to out-strip the nation’s, it wasn’t a big surprise.

The department said the Las Vegas area shed 8,800 jobs over the month. The main industries impacted were construction, leisure and hospitality, and local government.

Construction employment in Southern Nevada fell from 68,700 workers in October to 67,700 in November. Manufacturing employment dropped by 100 workers to 23,100. But trade, transportation and utilities gained employees, rising from 153,200 in October to 155,700 in November.

Unemployment in Washoe County fell from 12.2 percent in October to 11.3 percent in November. Carson City’s rate dropped from 11.7 percent in October to 11.2 percent.