Indicator of jobless decreases

Though pleased by the decline from December’s 5.8 percent rate, state Chief Economist Bill Anderson said a better indicator of Nevada’s economy is the increase in joblessness over the last year.

In all, 82,200 people were out of work in January, or 17,000 more than a year earlier.

“Our economy continues to grow but at a much slower rate than at the breakneck pace of 2004 to 2006,” he said.

At that time, Nevada led the nation in job growth, averaging more than a 5 percent increase in jobs per year.

Anderson added the job growth rate in the state was just 1 percent in 2007. Only about 9,700 more people were working in the state in January compared with a year earlier.

Since 1982, only twice has the gain been as low as during 2007 — in 1983 and in 2002.

“We are not generating the number of jobs we need to absorb all the growth in the population,” Anderson said.

He suspects job growth will be similar this year to last year’s gain, but predicted it would climb to 3 percent in 2009 because of increased construction at new Las Vegas megaresort hotels and then reach 5 percent in 2010.

He added the low job growth is accompanied by a 4.3 percent increase in consumer prices over the last year, modest gains in visitor numbers and gaming revenue, and oil prices topping $100 a barrel.

The 5.5 percent unemployment rate in January is a seasonally adjusted rate that takes into account normal fluctuations in the economy, such as people leaving temporary jobs created at retail stores during the Christmas buying season.

Not counting seasonal adjustments, state unemployment in January was 6 percent, according to the Department of Employment, Training and Rehabilitation.

Las Vegas had a 5.7 percent unemployment rate in January, up from 5.6 percent in December and 4.7 percent in January 2007.

Reno unemployment, which often is lower than in Las Vegas, climbed to 6.6 percent in January compared with just 5.4 percent in December and 5 percent in January 2007.

Carson City had a 7.5 percent unemployment rate in January, while Elko’s rate was just 4.6 percent.

Only in Elko and other rural mining areas is the outlook rosy, he added.

“With gold and copper prices at or near record highs, Nevada’s mining industry should continue to flourish,” Anderson said.

The construction industry, in particular, has suffered big job losses since the downturn in the state economy.

At the peak in June 2006, 148,800 people were working in construction jobs.

In January 2008, 123,700 worked in construction, or a loss of 25,000 jobs in a little over a year and a half. That includes 5,200 jobs lost between December 2007 and January 2008.

Nevada’s unemployment rate remains below the 5.9 percent rate in California, but is higher than the 4.9 percent United States average.

Contact reporter Ed Vogel at evogel@reviewjournal.com or (775) 687-3901.