Forbes: Las Vegas economy ripe for a rebound

By Cara McCoy

Tuesday, May 5, 2009 | 1:14 p.m.

Finally -- a "worst of" list that Las Vegas isn't topping.

A recent study by Forbes magazine indicates the suffering Las Vegas economy is likely to rebound, as are the economies of other Sun Belt cities, such as Phoenix and cities in Florida.

Forbes analyzed Bureau of Labor Statistics data on 336 metropolitan regions looking at job growth in the past year and how employment figures have changed since 1996. The data were analyzed by Forbes and researchers at Pepperdine University as part of the magazine's annual survey of the best places to do business.

The survey ranked the 10 big, medium and small cities expected to see the lowest rate of job growth. Las Vegas didn't appear on the lists, although the Reno-Sparks area, which the survey did indicate was likely to rebound, ranked as the No. 8 worst medium-sized city for jobs this year.

Las Vegas and Reno, whose economies were known earlier this decade for being among the most robust in the country, are likely to rebound from current woes based on past successes, the survey said. Population, job and real estate growth will bounce back slowly, the report said, because the reasons people move to Nevada, Arizona and Florida haven't changed: warm weather, low taxes and pro-business governments.

Forbes advised that Nevada and Florida should shift from their reliance on tourism and instead focus on medical services, business services and light manufacturing.

While the report painted a bright future for cities in the Sun Belt, those living in the nation's industrial heartland, in cities like Detroit and Cleveland, aren't likely to fare so well, the magazine said. In its study, Ohio and Michigan claimed 11 of the 16 worst metro areas for job growth.

High taxes and problems plaguing the automobile industry were cited in those cities' low rankings.