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June 3, 2012

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White House touts 27,000 new Nevada jobs as jobless rate spikes

Friday, April 16, 2010 | 1:42 p.m.

CARSON CITY – The White House, through its Council of Economic Advisers, says $2.9 billion in federal Recovery Act money has been poured into Nevada.

And it says that money is responsible for 27,000 jobs in the state through the first quarter of this year.

“From tax cuts to construction projects, the Recovery Act is now firing on all cylinders when it comes to creating jobs and putting Americans back to work,” says Vice President Joe Biden.

But figures from the state Department of Employment, Training and Rehabilitation tell a different story.

In January, total employment in Nevada was 1,185,700. A report from the state issued Friday shows 1,185,600 employed in March, or 100 less than two months earlier.

Nevada hit a record high of 13.4 percent jobless in March. The number of construction workers statewide fell from 67,300 in January to 62,600 in March.

Biden said, “We’re not only providing needed relief and spurring job creation now, but laying a new foundation for economic growth that will create jobs for a long time to come.”

William Anderson, chief economist for the state Department of Employment, Training and Rehabilitation, sings a different song. Nevada, he says, “continues on a turbulent path towards the bottom of the business cycle.”

He said employers shed 4,300 jobs in March with most of the losses coming from the construction sector.

“Any real turnaround in Nevada depends on sustained growth in the national economy and improved consumer sentiment,” Anderson said. “Nevada’s economy will continue to bounce along the bottom without any real direction.”

The federal Recovery Act was signed by President Obama on Feb. 17, 2009, and has a combination of tax relief, financial assistance and infrastructure projects.

Meanwhile, the Employment Policies Institute in Washington, D.C., said the outlook for teens getting a job going into the summer months isn’t good. Over the last three years there has been a 174 percent increase in the number of unemployed teens spending at least six months looking for work.

In Nevada last year, 15,000 of 47,000 teens 16-19 years old spent six months to find a job, according to the institute. That was a 31.5 percent rate compared to the national of 24.9 percent.

Michael Saltsman, research fellow at the institute, said minimum wage increases, like the 46 percent hike in Nevada’s minimum wage between January 2007 and July 2009, raise the cost of hiring and training entry-level employees.

Saltsman said, "In response, employers are reducing the number of low wage jobs they offer, or gradually moving to automated self-service systems."

The institute said it does not have the unemployment figures for this year so far for those ages 16-19.

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