Las Vegas saw a notable employment decline last month as tourism continues to struggle, according to the Nevada Department of Employment, Training and Rehabilitation. The Las Vegas area lost 4,300 jobs from July to August—a 0.4 percent decrease—using seasonally adjusted data. Statewide, employment levels remain nearly unchanged from a year ago, signaling what the department’s chief economist, David Schmidt, calls “a labor market that is largely stationary.”
This stagnation is not unique to Nevada; nationwide, hiring has slowed, with the U.S. Bureau of Labor Statistics reporting only a 22,000-job gain in August, and little overall change since April.
Las Vegas, whose economy depends heavily on tourism and conventions, is feeling the impact of fewer visitors. Through July, 22.6 million people visited the city—down 8 percent, or nearly 2 million, from the same period last year, according to the Las Vegas Convention and Visitors Authority. Factors contributing to the decline include ongoing economic uncertainty, financial headwinds, and visitor frustration over rising costs for resort fees, parking, and dining.
In response, casino operators and other businesses have offered price breaks to attract more customers. However, consumer worries about job security and finances mean many are choosing to forgo trips to Las Vegas as a way to save money.
Private-sector employment in Nevada dropped by 6,000 jobs month-to-month, driven by significant declines in construction and accommodation and food services. Despite these losses, there has not been a spike in new unemployment claims, and data on hours worked and hourly wages remains steady, suggesting continued demand for workers.
Nevertheless, Las Vegas continues to have one of the highest unemployment rates among large U.S. metro areas. As of July, the local jobless rate stood at 6 percent, ranking third-highest among metro areas with populations over 1 million.
