Reno surpasses Las Vegas in job growth, signaling economic shift
The Reno metro area has outpaced Las Vegas in job growth so far this year, according to new data from the Nevada Department of Employment, Training and Rehabilitation (DETR). From January to August, Reno added approximately 3,238 jobs year-over-year, slightly more than Las Vegas, which saw an increase of 3,200 jobs over the same period.
Brian Bonnenfant, project manager for the Center for Regional Studies at the University of Nevada, Reno, described the findings as a “shocker,” noting that Las Vegas typically adds tens of thousands more jobs than Reno annually. The reversal highlights a significant slowdown in Southern Nevada’s economy, largely attributed to a drop in tourism and a subsequent cooling in hiring.
Recent employment data shows that the Las Vegas area lost 4,300 jobs from July to August, and its unemployment rate stood at 5.6 percent in August, the fourth highest in the nation among metro areas with at least 1 million residents.
David Schmidt, chief economist with DETR, noted that while hiring in Southern Nevada has not collapsed, it has “leveled off,” with fewer people quitting and layoffs on the rise.
Bonnenfant attributes the economic downturn to several factors, including depleted household savings, the expiration of pandemic-era stimulus funds, and economic volatility linked to tariffs. He also points to the psychological impact of pervasive negative news, which dampens consumer confidence and spending.
Given Las Vegas’s reliance on tourism and discretionary spending, the city is particularly vulnerable when consumers cut back on vacations and entertainment in uncertain times. This “perfect storm,” as Bonnenfant describes it, has led to Reno’s unexpected lead in Nevada’s job growth so far in 2024.
