Nevada unemployment rate dips slightly, remains highest in US
Nevada’s unemployment rate dipped slightly from June to July, remaining the highest in the nation while the labor market still manages to grow in a reflection of the economy’s adjustment post-pandemic and uncertainty around a possible recession, a state economist said Friday.
The unemployment rate fell 0.1 percentage points to 5.3 percent, seasonally adjusted, according to DETR’s monthly labor market report released Thursday. Meanwhile, the labor force in the state grew by 3,400 — marking the eighth consecutive month that Nevada has added jobs.
The combination of high unemployment and high growth is leading to an unusual point in the state’s economy, Dave Schmidt, DETR’s chief economist, said at an EmployNV Business Hub event Friday.
“We have more people working in the state than we have ever had before,” Schmidt said. “It’s not a matter of trying to somehow get back up to the same level that we were and not being able to find enough workers. It’s that we’re trying to hold more jobs than we’ve ever built before and it’s hard.”
Nevada had the highest unemployment in the country, according to the U.S. Bureau of Labor Statistics released Friday. The U.S. unemployment rate for July was 3.5 percent.
But the labor force’s growth also led the nation, BLS data show. The Silver State had the highest job growth rate in the country, at 3.8 percent. Texas and Florida followed at 3.3 percent and 3.2 percent, respectively.
July was the first month all major industry sectors in the state were employing more workers than they did before the pandemic, DETR data show. Casino-related jobs are still down about 20,000 pre-pandemic, Schmidt said, but gains in food services and arts, entertainment and recreation helped the sector recover.
At the Business Hub event in the Sahara West Library, Schmidt held a discussion with Nevada employers that presented arguments on whether the state is in a recession or not. Some arguments for it included the climbing 10-year Treasury yields, a housing crunch and high consumer credit usage, which nationally passed $1 trillion in credit card debt.
But other indicators suggest the country can avoid a recession: inflation is dropping, demand for workers remains high, travel demand is strong and continued investment in large-scale projects going on in Las Vegas.
“(If) my experience trying to get on the rental shuttle at Harry Reid airport was any indicator, people seem to be coming here,” he said. “As you look at what’s taking place in the leisure industry, it’s not a lot of people are walking away and more people wanting to get in.”
McKenna Ross is a corps member with Report for America, a national service program that places journalists into local newsrooms. Contact her at mross@reviewjournal.com. Follow @mckenna_ross_ on X.