Jobless jump is fueled by end of school year

Steve Marcus

Steve Baker, center, inquires about cook positions during a food and beverage job fair at the CityCenter Career Center on July 16. Nicole Huerta, right, applied for a cocktail waitress position. When completed, the MGM Mirage project is expected to employ 12,000 people.

By Nicole Lucht

Fri, Jul 24, 2009 (3 a.m.)

The dramatic increase in June’s jobless rate can be partially attributed to jobs cut at the end of the school year, economists said. Las Vegas’ jobless rate in June was 12.3 percent; statewide, it was 12 percent.

Las Vegas’ labor force dipped in June, dropping 400 workers. However, it grew 2.5 percent from 987,000 to 1.01 million employed and unemployed workers living in the city in the past year. In that time, 37,500 jobs were eliminated, from 924,300 in June 2008 to 886,800 last month.

Nevada’s jobless rate in June was 2.5 percentage points higher than the national average of 9.5 percent.

Although June’s jobless rate increased significantly, Bill Anderson, chief economist for the state’s Employment, Training and Rehabilitation Department, attributed it partially to the cut of seasonal jobs, such as those in the education sector.

In June, 7,800 jobs were cut in Las Vegas, and only 2,900 of those jobs were not in state or local government, which includes public schools.

The eliminated private-sector jobs were spread across most of the major industries, including construction (700 jobs), professional and business services (2,000) and leisure and hospitality (600). Some of those job losses were offset by growth in a few sectors, such as manufacturing (100 jobs), trade, transportation and utilities (300) and health care and social assistance (200).

There are no clear signs that Las Vegas’s economy has hit bottom yet, said Brian Gordon, principal of Applied Analysis.

“We could see the job market continue to pull back for the next couple quarters,” he said.

The jobless rate doesn’t take into account workers who have given up looking for employment or those who have had their hours cut from full time to part time.

People who work on commission, such as real estate agents and car salespeople, have seen their income drop.

Projects such as CityCenter will be affecting the unemployment rate soon. Despite the fact CityCenter is hiring workers for when it opens, construction workers will be out of work. With few projects planned, those workers may find themselves without a job, Gordon said.

“Our economy is designed and built for growth, and when that doesn’t happen, it’s problematic,” Gordon said.

But there are potential silver linings. Renewable energy projects, such as solar and wind farms, are expected to add jobs.

“The diversification of the economy is important to provide stability,” Gordon said. “To the extent that it gains traction, it’s going to pay dividends over the long run.”

A boon in construction is expected through $142.4 million in grants from the American Recovery and Reinvestment Act, according to a study commissioned by the Regional Transportation Commission of Southern Nevada. There are 42 proposed road and other construction projects in Southern Nevada, according to the study, which was conducted by John Restrepo, principal of Restrepo Consulting Group.

“These 42 projects will help our business community and residents,” the study said. “Approximately, 1,700 potential direct, indirect and induced jobs will be produced, representing nearly $103 million of wages during the construction associated with the projects. This equates to almost $61,000 in labor income per construction employee.”