Unemployment rate has come down by 0.1 percent in the state blessed with wealth of minerals, bounty of tourism, exciting gaming industry. Is this showcasing an upcoming economy in Nevada? Not a great number experts say!
Nevada’s Unemployment rate has fallen by 0.1 percent in April compared to previous month. There has been significant improvement compared to last year which was soaring high at 12 percent. Currently the unemployment rate of Nevada is 9.6 percent.
The State Department of Employment, Training and Rehabilitation economist, Bill Anderson said, “Nevada is seeing advances in nearly all industries” in a year-to-year comparison.
In the Las Vegas area, total employment jumped to 898,700, or 3,400 more people on the job than in March. There were an estimated 132,400 people out of work, 2,200 less than in March.
“Even with improvements in nearly all corners of the economy, Nevada still has the largest ratio of underwater homes of any state in the nation, the highest labour market under utilizations rates and thus far, the percent of jobs recovered pales in comparison to other regions in the country,” Anderson said.
The figures may be indicating that Nevada is on path to economic recovery, but the bigger picture has a different story to narrate as Nevada has the nation’s leading unemployment rate at 9.6% in the month of April as released by Bureau of Labour Statistics.
Why Nevada Has The Highest Unemployment Problem?
The silver state is rich in natural resources. It is nation’s leading producer of silver and other minerals like gold, silver, mercury, petroleum and diatomite are also extracted. The economy highly relies on tourism and gaming industry, mainly located in Las Vegas followed by construction and mining. These industries are highly volatile and hit hard during an economic slowdown resulting in unemployment problem.
The state’s job market typically saw an increase of about 7,300 jobs in March from the previous month, but this year only 4,400 jobs were added.Anderson said.
The leisure and hospitality industry, a key indicator of the health of Nevada’s vital tourism economy, added 2,200 jobs in March from February, and roughly 7,100 over the past months.
The Government Workers Rule the Roost Here
Nevada’s government employees are the highest paid in the entire nation, revealed in a recent study by Applied Analysis for the Las Vegas Metro Chamber of Commerce, and these do not include the other benefits offered to them.
The economy is struggling, state unemployment is highest in the Nation and private sector wages are flat. Yet in 2012, more than 22,000 of Nevada’s 132,000 public employees received at least $100,000 in total compensation. Five thousand received at least $150,000 in total compensation, and more than 1,200 received at least $200,000.
Police officers and firefighters dominate the list of highest-paid government workers.Two noteworthy trends in compensation data: NPRI President Andy Matthews said the number of city of Las Vegas firefighters earning more than $200,000 dramatically increased, from 79 in 2011 to 130 in 2012.
To increase the woes private businessmen and employers in Nevada are expected to be hit with higher taxes to pay off the money borrowed during the recession to cover unemployment benefits from the Federal Government.
The Senate Finance Committee approved two bills to pay off the interest on the loan and to issue bonds to retire the estimated $540 million owed.
Renee Olson, administrator of the state Division of Employment Security, said Assembly Bill 482 will permit the agency to add a temporary assessment to pay the $17 million in interest due to the government by September 30 this year.
That will increase the monthly employer assessment by 0.08 percent, or $22 per year per worker, she said. A second bill, Senate Bill 515, will permit the agency, with the approval of the state Board of Finance, to issue bonds to return Nevada’s unemployment fund to solvency.
It will be several months before the amount of the bonds to be issued will be decided. Olson said it plans to structure the bonds to achieve the lowest interest rate. When that becomes final, the employers may face another increase in their monthly assessments. But the amount has not been decided. The average unemployment tax now is 2.25 percent on the first $26,000 of a worker’s salary.
There is a feeling of discontent among the Nevadans regarding the increasing tax measures as their taxes are spent inefficiently. They suffer the burden of unemployment while Government workers seem to be enjoying a fat payroll.