The slumping housing market has caused a tremendous shrinkage of jobs in the construction industry across the state, and as a result Nevada's June unemployment rate of 4.6 percent remains above the national average of 4.5 percent for the second consecutive month, says the Department of Employment, Training and Rehabilitation.
The state has lost 5,200 construction jobs in the past year, says William Anderson, chief economist for DETR. "Employment in Nevada has increased by 1.7 percent over the past 12 months, the lowest growth rate since September 2002 and barely above the 1.5 percent increase reported for the U.S. as a whole."
In the past 12 months, construction sector employment has declined by 3.5 percent.
Government employment, including the university and college system, aggravated the yearlong slowdown in job growth. The start of summer labor market volatility saw a decrease of 5,000 jobs in June. Unemployment figures typically rise during this time due to teachers and other educational staff taking off the summer months.
The state's mining regions present a more positive picture, Anderson says. "Gold continues to trade above $650 per ounce, and copper has rebounded by more than $1 per pound (to approximately $3.50) since early February."
The weak housing market, strong mining industry, and modest overall growth are likely to continue into 2008. However, Elko, Humboldt, Lander and White Pine counties each posted an unemployment rate below 4 percent in June, while Eureka County posted 18.5 percent job growth from the fourth quarter of 2005 to the same quarter of 2006, Anderson says.
DETR Director Larry Mosley says Nevada's economy is still strong compared to the rest of the nation. "A number of commercial construction projects are on the horizon that will pour a tremendous amount of work opportunities into the labor market," he says. "Nevadans should remain hopeful that the prospect of obtaining employment will eventually improve."
Large projects in southern Nevada, such as The Palazzo, the Encore at Wynn Las Vegas, Project CityCenter and Echelon Place, should boost the gaming and construction industries over the next four years.
