Nevada’s employment opportunities are growing in nearly every sector of the economy. In 2017, Nevada gained 40,900 workers, according to recent data released by the Nevada Department of Employment.
Compared to its 2009 employment growth rate, which was in the red at a minus 7.1 percent, Nevada is now leading the nation in job growth in 2018. Nevada’s year-to-year job increase (seasonally adjusted) was 3.3 percent compared to 1.4 percent for the U.S.
Gov. Brian Sandoval attributed Nevada’s continuing job growth to statewide efforts, stating in a recent release that the “groundwork has been laid for continued improvement in the economy. In addition to leisure/hospitality and construction, industries such as professional services, healthcare, trade/transportation, and manufacturing also made notable contributions to the Silver State's job base.”
In 2017, Nevada’s labor force participation rate (the number of people working compared to its population) was roughly 61.9 percent, compared to 62.9 percent nationwide.
More jobs have boosted Nevadans’ personal income in all but one of the last 30 quarters, and dropped the jobless rate from 5.7 percent in 2016 to 4.9 percent in 2017. A decline of 0.8 percentage marks the lowest annual average since the 2007 rate of 4.6 percent.
Long-term unemployment stands around 15,000, with the most significant drop among veterans. In 2017, 4.9 percent of veterans were unemployed compared to a whopping 14.7 at the height of the Great Recession.
By contrast, part-time employment increased to roughly 300,000 jobs from the roughly 200,000 part-time workers employed before the recession.
During the recession, Nevada had the highest unemployment rate in America. That changed by late 2017, when its rate fell behind five other states.
The Silver State’s increasing labor market and improving economy has been a draw to “in-migrants,” people who’ve moved to Nevada from another state. In 2017, Nevada had the second-fastest growing population in the nation. Based on U.S. Census Bureau data, 60,000 more people called Nevada home in 2017. This two percent increase brought the state’s total population to three million.
Job growth gains were highest in five industries: professional and business services, construction, education/healthcare, leisure/hospitality, and government. The accommodation/food services industry reported the highest number of new hires in 2017.
The Department of Employment, Training and Rehabilitation provided a “Recovery Scorecard,” highlighting the state’s economic improvements. It notes that “employment is at a record high,” with 253,600 jobs added since the recession.
The private sector saw significant gains. Small businesses added 115,000 jobs, and 625,000 Nevadans work for companies that have fewer than 100 employees.
Most notable is the state’s unemployment insurance trust fund balance. During the recession, it was in the red at minus $789.9 million. Today, it’s at a record high of $1 billion.
Nevada’s employment numbers have been increasing over the last several years, earning it a distinction in 2016 by Gallup’s Job Creation Index. In 2016, Nevada scored first, a contrast to its last place ranking in 2009 and 2010.
Sandoval noted that this trend was in large part due to the private sector. He told local news media that, “our private sector job creation is driven by both an expansion of our traditional industries and significant economic diversification.”
Through billions in tax credits, the state of Nevada has drawn businesses both large and small. The giant electric car company, Tesla, is scheduled to open its $5 billion battery “gigafactory” this year outside of Reno. It’s anticipated to create 6,500 direct jobs and 22,700 indirect jobs. Digital commerce company eBay announced its plan to invest more than $400 million in the state, and Apple and Microsoft announced plans to increase their operations in Nevada.
Smaller startups are joining the large corporations. According to the Kauffman Foundation’s Index of Startup Activity, Nevada has the highest rate of startup growth in the U.S. In 2016, there were 107 startups for every 1,000-employer businesses.
The economic turn-around for Nevada is significant. During the recession, Nevada lost 14 percent of its workforce, and its unemployment rate was over 14 percent. Ten percent of Nevada’s homes were in foreclosure; 71 percent of Las Vegas homeowners owed more than their homes were worth.
But by 2016, Forbes listed Nevada first in its list of “the ten best states for future job growth.” It pointed to tax incentives, tourism, and the legislature’s public funding proposal to draw the NFL’s Oakland Raiders to Las Vegas. And, Moody’s Analytics projected that Nevada’s job growth would rise by an annual rate of 2.6 percent through 2020. Nevada’s forecast was better than any other state’s, which the recent labor statistics support.