The Las Vegas Valley has made a remarkable recovery in employment since the onset of the COVID-19 pandemic, surpassing the number of jobs lost during the crisis. According to a study from the National Association of Home Builders, Las Vegas initially lost 277,900 jobs in 2020, accounting for roughly 26 percent of its workforce. By August of this year, the region had reached 109 percent of its pre-pandemic employment levels.
This rebound follows a period when Southern Nevada’s economy, heavily reliant on tourism and casinos, was hit hard by shutdowns. Unemployment in the area soared from around 4 percent in February 2020 to 34 percent in April 2020, but as of August, the jobless rate had dropped to 5.6 percent.
Despite these gains in employment, the housing market in Las Vegas has not fully recovered. The area’s real estate sector experienced a surge during the pandemic due to low mortgage rates, but prices remain near record highs and rates, though declining, are still elevated. Many potential buyers are priced out, and homeowners with low-rate mortgages secured during the pandemic are reluctant to sell. As a result, homebuilding has slowed, and some experts see the sluggish housing market as a potential warning sign for the broader economy.
Las Vegas’ economic trajectory highlights the uneven nature of recovery across different sectors, with jobs rebounding strongly but housing affordability and activity still lagging behind.