Nevada Unemployment Rate Remains Considerably Higher Than National Average

In July, Nevada's unemployment rate rose to 5.4%, indicating the second consecutive increase in the unemployment rate. 

The Department of Employment, Training, and Rehabilitation (DETR) of Nevada indicates that the unemployment rate in the state increased from 5.2% in June to 5.4% in July. The casino sector in Nevada, which drives the state's economy, was held responsible for the monthly net decline of roughly 1,500 jobs. 

“Nevada’s labor market softened in July, as unemployment increased again and employment declined slightly over the month,” said David Schmidt, the chief economist at DETR.

"This decline was concentrated in the leisure and hospitality sector, which fell by 5,000 jobs from June to July, while most other industries grew, leading to an overall decline of 1,500 jobs over the month. It is possible that this estimate was affected by the closure of the Mirage, which closed on July 17, impacting the casino-hotel, food services, and casino support industries.”

The seasonally adjusted unemployment rate of 5.4% is the highest in Nevada in over two years. 

 

More Individuals, More Laborers 

In recent years, the Las Vegas Valley has experienced a significant population growth due to an influx of new residents migrating from California to Southern Nevada. 

Within three years, the Las Vegas metropolitan region has grown from roughly 2.77 million residents in 2021 to over 2.95 million individuals this year, marking a 6.5% increase, or approximately 181K individuals. As the workforce grows, Las Vegas needs to create more jobs to balance the increase in population. 

DETR indicates that the economy has effectively managed the population increase, with the state contributing almost 50K jobs to the workforce in the past year. According to DETR, total employment reached 1,584,600 jobs in July 2024. 

The Tropicana and The Mirage shut down in April and July, respectively. The shutdown of the resorts removed over 4,500 guest rooms from operation and resulted in the loss of numerous jobs. 

The positive aspect is that the shutdowns of the resorts are anticipated to aid other properties on the Strip, potentially resulting in elevated room rates for the operators still open. Last year, MGM Resorts earned nearly $600 million in room revenue from the Mirage. 

The Mirage will stay closed until at least spring 2027, when it will reopen as Hard Rock Hotel & Casino Las Vegas. Hard Rock has employed thousands of construction laborers to convert the Polynesian-themed site into a rock ‘n’ roll venue. The upcoming resort will require thousands of permanent employees to manage the property. 

The Tropicana is set for demolition to potentially clear space for a MLB stadium, which could generate thousands of construction jobs and numerous long-term operational roles. 

 

Joblessness Exceeds National Mean 

Nevada's casino sector is operating at unprecedented levels, with gaming revenue hitting record highs for the past three consecutive years. The initial surge in gaming was attributed to pent-up demand for entertainment and leisure travel due to the COVID-19 pandemic, but the increase has persisted well beyond what was anticipated. 

As of last month, Nevada has more jobs than it did prior to the pandemic — 1,584,600 positions compared to 1,420,800 in July 2019. Due to the rise in population, Nevada's unemployment rate exceeds the 3.7% figure noted in July 2019. 

The unemployment rate in the US for July was 4.3%, rising from June's 4.1%. In July, the country experienced its fourth straight rise in the unemployment rate, which went up from 3.8% in March.