Henderson’s unemployment rate remains below neighbors’ rates

By Nicole Lucht

Friday, Jan. 9, 2009 | 2 a.m.

North Las Vegas’ blue-collar residents could be suffering more in this recession than Henderson’s white-collar homeowners.

Las Vegas, too, is reported to have a higher household unemployment rate than its neighbor to its south.

When it comes to the unemployment rate, North Las Vegas and Las Vegas have at least a one percentage point lead over Henderson. During 2008’s third quarter, Henderson had an average 5.5 percent jobless rate, Las Vegas had 7.2 percent rate, and North Las Vegas, 8.1 percent. Clark County’s overall average unemployment rate in that quarter was 7.1 percent.

The averages were compiled by the Federal Deposit Insurance Corp. and based on the Labor Statistics Bureau’s current population survey.

The figures relate to the number of households reporting unemployment, not necessarily the loss of a job in the city limits. For instance, a North Las Vegas household reporting a job loss could have worked elsewhere in Clark County.

Henderson experienced a 37.5 percent increase in its unemployment rate from 2007’s third quarter to the same period in 2008. Las Vegas saw an increase of 38.5 percent and North Las Vegas had an increase of 47.3 percent.

From 2006’s third quarter to 2007’s third quarter the cities experienced similar increases: Henderson, up 17.6 percent; Las Vegas, up 18.2 percent; and North Las Vegas increased 17 percent.

Regional economic expert John Restrepo said the continuing disparity is largely because of the socio-economic characteristics of the communities.

Henderson has a larger percentage of white-collar residents and they are probably less subject to layoffs, he said. North Las Vegas has more working-class, blue-collar families.

“Those are the folks who work in construction, maybe some in gaming, where the layoffs have occurred,” Restrepo said about the North Las Vegas residents.

Henderson Economic Development Manager Bob Cooper agreed that each of the municipalities is different, “and in some regards, significantly different in the types of employment or the occupations.”

Henderson, he said, is less dependent on the hospitality and gaming industries found throughout Clark County.

“Even though we are one giant region here together, I think it’s interesting ... to see that there are significant differences in the real localized economies,” Cooper said. “Knock on wood, I just think we’re fortunate by the type of diversification that we’ve had in the area.”

Henderson has developed from its start as an industrial war town to an economically diversified city that tries to bring in growth industries, such as private colleges and health care.

“In Henderson, we really don’t have that many gaming, hospitality, convention, tourism components,” he said. “We’ve tried to build an economy that’s a little bit different, that’s been more about population growth, and therefore what kind of services that those kinds of individuals would need.”

Henderson is more of a bedroom community, which could explain why the numbers are lower, said Keith Schwer, director of UNLV’s Center for Business and Economic Research.

North Las Vegas’ high unemployment rate may reflect the lower-income levels in the city, he said.

“Those people have been more affected by the loss of jobs.”

Las Vegas has been similarly affected, but to a lesser degree than North Las Vegas.

Las Vegas and North Las Vegas officials did not respond to requests for comment.

Nicole Lucht covers health care, workplace and banking issues for In Business Las Vegas and its sister publication, the Las Vegas Sun. She can be reached at 259-8832 or at [email protected].