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Published Wednesday, June 17, 2009 | 7:21 a.m.
Updated Wednesday, June 17, 2009 | 7:48 a.m.
Sen. Harry Reid statement
Senate Majority Leader Harry Reid, D-Nev., today made the following statement about the record high jobless rate:
“My thoughts go out to the thousands of Nevadans struggling to stay in their homes and find new jobs. While the news of Nevada’s record high unemployment rate is very unsettling, it underscores the importance of the work we’re doing to help the economy recover and stabilize.
“We must remain vigilant in our effort to create jobs by investing in Nevada's renewable energy and transportation projects while continuing to help Nevadans who are struggling to get by.
“I will continue working with my colleagues to strengthen our state's economy and put an end to this crisis that has been years in the making.”
Sun Coverage
CARSON CITY – While some analysts are suggesting the recession may be bottoming out, Nevada’s jobless rate in May hit a record 11.3 percent with 154,600 persons unemployed.
And unemployment in Clark County climbed from 10.4 percent in April to 11.1 percent in May, with 112,700 jobless in the county.
The state Department of Employment, Training and Rehabilitation said the state’s rate is the highest since records started being kept in 1976. The previous high was 10.7 percent in December 1982.
William Anderson, chief economist for the department, said “There is some sentiment that the U.S. Economy may be near the bottom of the recession. Unfortunately, May brought with it news suggesting that economic conditions in Nevada remain extremely weak.”
There were 8,000 more people out of work in Clark County in May than in April. And the major sectors of the economy in Southern Nevada didn’t show improvement.
Construction employment fell to 78,900 or 1,100 less than were on the job in April. Casino and hotel employment dropped from 156,200 in April to 155,800 in May. The department said manufacturing employment remained at 23,800. But in the utilities, transportation and trade sector, there were an additional 200 more workers, bringing that total for May to 154,900.
Anderson said that employment historically is a “lagging” indicator of the economy’s health. When a recovery takes hold, the labor market does not respond immediately.
Only six states, including California, have higher unemployment rates, the department said. Nationally the unemployment rate jumped from 8.9 percent in April to 9.4 percent in May. And it 3.9 percentage points higher than a year ago.
From 2002-2006, Nevada’s jobless rate consistently fell below the national average. Since then Anderson said the rate is higher than the national level.
The department said investment for new construction projects in Nevada has dried up with employment in that sector falling 17 percent in the first quarter of 2009. The downturn in the economy has had varied effects on private businesses in Nevada.
From the fourth quarter of 2007 to the fourth quarter of 2008, large employers shed 31,081 jobs. Medium-sized businesses with 50 to 499 workers lost 34,412 employees. And small business dropped 18,569 jobs.
The department said the jobless rate in the Reno-Sparks area increased to 11.2 percent, up two-tenths of a percentage point from April. The unemployment rate in Carson City remained at 10.8 percent. The jobless rate in Elko remained at six percent for May, the same as in April.
i would expect the rate to hit at least 14% before it starts to drop.... the government spending plan is dragging the recession out, also there are still many more foreclosures still to hit..
It will soon be difficult to distinguish between homeless shelters, homeless camps and jails!
Unemployment will not peak until mid 2011. We got a long way to go. 11.3% unemployment will seem like the good old days.
I'm no economist, but it looks like this one-month number might not be as severe as it appears on the surface.
Unemployment also jumped nationally in May, but that increase was largely the result of long-term unemployed workers resuming their job search. (For some reason, the government only considers you officially "unemployed" if you're actively looking for a job. Once you give up, you're not unemployed anymore, and you don't count in the unemployment rate.)
If you look at the Nevada DETR data, it appears most of the increase came from a 7,200-person increase in the labor force from April to May. (They could have come from two sources -- new residents, and long-term unemployed residents who resumed a job search.) By contrast, total employment declined by 1,600 in the month.
So we weren't necessarily looking at 8,000 lost jobs in May. Rather, we might have lost a thousand or so -- and another 7,000 people started looking for work, and didn't find it.
Not great news, I know... but more indicative of a bottoming-out process than a freefall decline, which is what many people think when they see stats like this. Most of the unemployed in this stat were just as unemployed in April, but weren't classified that way a month ago by the DETR.
Anonymous_Guy......
Good post! You made several very valid points... Thanks!
Public spending created many jobs in the Great Depression. With hundreds of billions now pouring in to everything, this economy will be turning around within months IMO -- found a cool site; Balkingpoints ; incredible satellite view of earth
Harry Reid's cap and trade bill will not help this problem.
The green shoots are dying of thirst from increased gasoline prices and higher interest rates. Yesterdays headlines were jet fuel has jumped 22% this month. This has to lead to higher airline prices and fewer visitors.
FWIW:
The economy is thriving in Newfoundland!
The provincial government just announced a $10 billion extension to the Hibernia oil field yesterday and there are job postings everywhere.
People are spending money all over the place.
Go to any restaurant anytime of the week and it's packed while the shopping malls are always busy.
:)
Harley, the only problem is that you're working in Newfound F'ing Land. A miserable fog shrouded frozen hell hole. But it might be one of the few places our overpaid Union loafers will be able to find work. The Union Craftymen are all in trouble, and unless they marry the BA's ugly daughter, tough times are a 'comin.
I just deposited a union paycheck for working 48 hrs this week for a take home net of $1,615.53. I believe you non-union workers have a
"jealousy" thing going on.
Good hourly wage, good medical, good retirement.
Organize the shop your working in. Let a union take care of your future.
Just over the wire: Obama has created or "not destroyed" over 200 ka-trillion jobs.
Woooooweeeeeee!!!!!!!
Only one problem, fremmasmind, you Union lover.. You will need to be sure you're working continually until retirement. Better save a lot of money while you're working on the Union loafer jobs. They're leaving Las Vegas, and won't return for many years. So be ready to travel to wasted spaces like Texas and Lousyanna with your dopey kids. They're not exactly Union hotspots, but that's where most of the work is. Foul petrochemical and chemical wastelands. So don't knock up the Old Lady too often. She might run off with your brother.
Nah, they never listen. So they end up in mobile homes on Boulder Hwy. With their American built beater. Very sad, actually...
i remember when everyone thought 10 percent unemployment was "crazy talk".
it's going to get to at least 20 percent.
there are too many americans out work and more are getting laid off every day. just "google" the word "layoff" in the news section.
we only hear about the big companies, but it's 30 here, 50 there, 70 there all over the country every day.
Is it just me or does it seem to you that nednougat is not very fond of other countries, states, types of housing, faithful Old Ladys and oh yea union members?
We UNION families spend our $s in Vegas. Nednougat don't bite the hard working hands that feed you!