Las Vegas Employment Outlook

For a city that’s built on the hospitality, tourism, and retail sectors, Las Vegas is undergoing what would be expected in terms of job cuts and unemployment.  The city itself has one of the highest unemployment rates at 13.1% at the end of August.  There is little surprise why.  People are no longer able to spend like they used to and the average American’s consuming habits have changed due to the recession.

Las Vegas is a city built on the service and hospitality industry.  Both of these industries have taken major hits recently.  The diversity of the city’s economy is almost nil, which does not bode well in a recession where cities that have diverse, robust economies are the only ones left standing.  An unemployment rate that is higher than the national average is very bad news.  What’s worse is economists expect the unemployment rate to almost double before it begins its long, slow slog back to average or above.

One of the bright spots in Las Vegas’s economy will likely come this fall and winter.  The City Center project, a huge collection of shops, restaurants, and other tourist mainstays is set to open.  This centrally located facility will likely help to employ many people who would otherwise be claiming unemployment benefits or unable to find work in the city.  The city is hoping the City Center project will draw more tourists as well, many of whom already come to Las Vegas for the world class shopping and dining experiences it offers.

The appeal of Las Vegas hasn’t faded, but consumer’s ability to come and spend as much time and money in the city as they once were able to has.  Las Vegas has had to rely on international tourism to try and stay afloat.  And staying afloat is not something that has been going on recently in Sin City.  Even the city’s world-renown entertainment industry haws taken a massive hit.

Even the Clark County school district, which employs nearly 30,000 people, has had to make cuts recently.  This school district is one of the city’s largest single employers, and in an industry where demand is built in, like the education industry, massive job cuts are an indicator of more negative economic fallout to come.  Another sector that usually helps to bolster a city’s economy is the government sector.  Nellis Air Force Base, one of the nation’s busiest and largest military installations has failed to pull Las Vegas out of the depths of a 13.1% unemployment rate.  In fact, without the base, the unemployment rate would likely be even higher, and on par with other cities like Detroit, where unemployment is about 20% and moving ever skyward.

Las Vegas will likely be hurt for years to come by this recession.  The city has already imploded upon itself economicallyLas Vegas, and a leaner, more efficient skeleton of itself should emerge on the other side of the recession.  Las Vegas, a city built upon extravagance and luxury, likely still has a long ways to fall.