Since the end of the pandemic, only one job sector in Clark County has seen real wage growth consistently outpace inflation: information technology. According to Andrew Woods, director of UNLV’s Center for Business and Economic Research, roughly 19,900 people work in IT locally, compared to around 303,800 in the leisure and hospitality sector, which remains the region’s economic backbone.
Despite the national trend of real wages outpacing inflation since May 2023, Clark County’s real wage growth has lagged, with consistent gains only beginning in 2024 as inflation eased. This slow wage growth, combined with rising living costs, is a key factor driving Las Vegas’ affordability gap.
The local economy has been sluggish in 2024, with declining tourism impacting profits and jobs in the hospitality sector. Major casinos have responded with price reductions to attract visitors, but a full recovery remains uncertain.
Woods emphasizes that job growth and wage growth need to be considered together when assessing affordability. While wage growth turned positive in early 2024, it was largely negative throughout 2023.
Looking ahead, Woods suggests that health care, warehousing, real estate, and professional and business services are sectors poised for job growth in Las Vegas. Health care, in particular, is forecasted to add 10,630 jobs through 2031, surpassing even the food and accommodation sector, which is expected to contribute 10,310 new jobs.
The Federal Reserve’s ongoing interest rate cuts play a significant role in shaping the economic outlook, as stemming inflation remains a top priority for policymakers. For Las Vegas, diversifying beyond hospitality and into rapidly growing sectors like health care may be the key to improving affordability and long-term economic stability.