At 13 percent, jobless rate falls for first time this year

By Cy Ryan

Published Friday, Nov. 20, 2009 | 7:08 a.m.

Updated Friday, Nov. 20, 2009 | 7:40 a.m.

CARSON CITY – For the first time in more than a year, the jobless rate fell in Clark County but a state official says the economic problems of Nevada are far from over.

Unemployment dropped from 13.9 percent in September to 13 percent in October with 129,700 persons out of work in Clark County. In September there were 141,000 jobless.

By comparison, the jobless rate in October 2008 was 7.5 percent with 76,400 jobless.

The state Department of Employment, Training and Rehabilitation reported that the Nevada rate dropped from 13.3 percent in September to 13 percent in October with 175,300 out of work.

Department economist Bill Anderson said the last time the state saw a month-to-month decline in the unemployment rate was in November 2005.

“As we head into the holiday season, this is welcome news,” said Anderson. “However it is not a reason to be overly optimistic. The state’s well-chronicled economic difficulties are far from over.”

In Clark County total employment last month fell to 848,300 workers, down from the 853,700 in Septembers. Those employed in construction dropped to 66,700, down from 69,500 in September.

The number of jobs in the casino-hotel business totaled 150,500, a decrease of about 800 from September. Manufacturing employment decreased by 200 workers to 23,200. And the utilities, transportation and trade sectors in Clark County dropped 1,100 jobs to 153,400.

The department said unemployment in Washoe County fell from 13.1 percent to 12.2 percent in October and Carson City’s rate declined from 12.8 percent in September to 11.7 percent in October.

Anderson said “The decline in the jobless rate is more a reflection of a stagnant or declining labor force than an improvement on the employment front.

“At best, October’s trends, coupled with a growing belief that national conditions are tentatively on the mend suggest that the economy may be in the process of stabilizing, but at a level which will still result in continued hardship for many Nevadans.”

Anderson said the state rate fell in each of the state’s metropolitan areas but those rates are not adjusted for seasonality.

H said consumer spending both by residents and tourists will be a key to any recovery in the state.

“Consumers have been hard-hit by this downturn and may continue to exercise caution in the early stages of a recovery,” Anderson said. “As a result, Nevada may lag the national rebound, given the relatively important role that consumer spending, especially discretionary spending, plays in our economy.”

He said sales in food services and bars dropped 4.4 percent compared to a year ago.

“Activity was off by 24.4 percent in the motor vehicles and parts category,” he said. “Sales at general merchandise stores came in 10 percent below the same period a year ago.”

Nevada had the second highest unemployment rate in the nation in September, trailing only Michigan.

Coinciding with the jobless report, the Nevada Retail Association said it expects decreased sales during the early Christmas shopping season.

It had forecast $1.4 billion in holiday sales but has dropped that to $1.2 billion.

The association says the strong predicted sales of "Black Friday" may be available only on that day instead of being carried into the season.

Association President Mary Lau said, "Cost-conscious shoppers need to strike a balance between waiting for ever-better sales prices versus waiting too long and finding that the item is sold out because retailers hve cut back on inventory."