Start of a positive trend in unemployment figures?

By Nicole Lucht

Friday, May 29, 2009 | 3 a.m.

Could the unemployment rate be slowing down — even about to make a U-turn?

Although the state’s jobless rate in April climbed to 10.6 percent (up 0.2 percent from March), Las Vegas’ rate held steady at 10.4 percent.

The number of unemployed workers fell by 0.1 percentage points to 146,300 people, the first time the rate declined in a year.

But even so, it’s too early to tell whether the small increase in the state’s jobless rate, the tiniest since April last year, and the drop in unemployed workers, is the start of a positive trend.

“The decline (in workers unemployed) may be an indication that the worst of the downturn is behind us, but only time will tell if April’s reading is the start of a trend or just a brief respite from continued increases in unemployment,” said Bill Anderson, chief economist of Nevada’s Employment, Training and Rehabilitation Department.

There are concerns still. Nevada has lost more jobs, percentagewise, in this recession than any time since the World War II era, Anderson said.

In the first four months of this year, employment has declined 5.7 percent, compared with 2.4 percent in 1982, the most recent deep recession. And more job losses are expected this year.

Construction continues to hold the dubious title of having the most job losses. In the past year 22,600 jobs have been lost. In April alone 1,200 jobs were cut. And as construction at CityCenter and Fontainebleau comes to an end this year and employers start releasing workers in the summer and fall the number of construction workers signing up for unemployment benefits is likely to rise.

“Nevada’s construction woes are not unique to the state, although the buildup and fall of the industry has been more severe than most,” Anderson said in a statement. “During the peak of the housing boom‚ year-over-year employment growth neared 18 percent in Nevada. Compare that with the 5.2 percent employment growth in the nation as a whole over the same time period. At its height the construction industry accounted for 11.2 percent of all jobs in the state, and only 5.7 percent in the nation. Through 2009, the ratio of construction jobs has fallen to 8.1 percent of all jobs in Nevada, a level similar to the early 1990s.”

Anderson also cautioned on the recent restructuring among the Big Three automakers, accounting for 550 jobs lost in Las Vegas in April. This month Chrysler announced it was pulling four dealerships’ franchise agreements and General Motors announced it will cut 1,000 dealerships by late next year. Ford Motor Co. said it won’t be cutting back its dealerships.

Las Vegas jobless figures

There was a 30.2 percent year-over-year increase in the number of workers in the laborforce. In April, 1 million people were in Las Vegas’ workforce; last year at the same time there were 977,000 people employed.

During the same time there was a 54.7 percent loss of jobs in the market: 871,400 jobs in April compared with 926,100 jobs last year.

Construction jobs disappeared by 14,400 in the past year, down 15.2 percent to 80,100 jobs from 94,500.

The leisure and hospitality sector, the main employer of Las Vegans, released 6.1 percent of its workforce in the past year, equating to 16,600 jobs. In April 2008 the sector employed 274,100 workers; this year it employed 257,500.

Professional and business services lost 10,700 jobs in the past year, a decrease of 9.3 percent from 114,900 jobs to 104,200.

The Las Vegas health care industry continued its upward trend, accounting for job growth of 3.5 percent by adding 2,300 jobs.

National job losses

The national unemployment rate, 8.9 percent (up from 8.5 percent the month before), continues to trail Nevada, but the number of workers laid off is significant. In April 271,000 workers lost their jobs. And at every one of the 2,700 mass layoffs across the country, at least 50 people were let go, the Bureau of Labor Statistics reported May 22.

Compared with last year, the number of mass layoffs has doubled, the bureau said.

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].