Nevada Unemployment: The Worst Gets Worse

The Labor Department puts out numbers on state unemployment about two weeks after it posts the national number. Nevada ranked No. 1 in December 2010 for the highest unemployment rate in the country -- again -- at 14.5%, up from 14.3% the previous month and 13% at the beginning of last year.

Not all of the states with the highest jobless numbers suffered as badly. The unemployment rate in Michigan dropped from 14.5% in January of last year to 11.7% last month. Some of that "improvement" may be because workers have left the state in search of new jobs.

The unemployment rate in 20 states rose in December; fell in 15; and stayed flat in another 15. But Nevada remains a case all its own. Because of unique circumstances, it's a state that may be mired in high joblessness for many years.


Nevada has been hit by two forces from which it can't easily recover. The first is a drop in tourism. The gambling business will probably rebound along with the economy, so that sector will become less troubled as the overall economy improves. It's housing, however, where the most employment damage has been done, and that may not improve for a decade. RealtyTrac and several other services say that foreclosures and mortgage defaults in Nevada are the highest in the country. Prices of homes in parts of the state are down over 60% compared to the 2006 peak. The Nevada home market was remarkably overbuilt as the industry expected an influx of people into the state to continue and property values to soar alongside that.

Nevada may be the best example of the intransigence of unemployment in some regions nationwide. The home construction business was one of the largest employers in several states. It was very important to the California economy. The jobless rates in some cities in the country's largest state are above 15%. Real estate values in those areas will not rebound any time soon, and may never get back to the levels of five years ago.

The woes of the housing market may be the single largest drag on unemployment. New S&P/Case-Shiller data shows home prices are still falling, at least in many of the large cities. Nevada's problems are not nearly over.


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hollersback

funny how things tanked soon AFTER the Democrats took control of Congress, Democrats in control of the Congress and tha White House,ram through Healt Care, But are to ignorant to pass a Budjet,last year

March 29 2011 at 11:18 AM Report abuse rate up rate down Reply
toosmart4u

We always forget that this great recession was started by you republicans.

February 04 2011 at 4:31 AM Report abuse rate up rate down Reply
cutevolblondiee

Blame stinky harry for this

January 27 2011 at 4:45 AM Report abuse -1 rate up rate down Reply
trmnatr2

It doesnt matter who they elected .Its a boomtown economy there and the boom always ends sooner or later.When a recession hits,it usually takes at least three years to finish and Its been a little over two years for this one.Nevada survives on people spending extravagently and right now ,everyone is tightening up.It was so obvious that they were overbuilding that you knew it had to go bust.Floridas in the same boat.

January 27 2011 at 2:37 AM Report abuse rate up rate down Reply
bkeiner

and still they elect Harry Reid

January 26 2011 at 7:52 PM Report abuse rate up rate down Reply
picpaintbl@aol.c

I have no pity for nevada, in fact I hope they all lose there jobs and then there houses. then next time harry 'the prtince reid' runs for office they'll think about economics first instead of politics. oh by the way I'm coming out there to buy some homes when they are lost because you can't pay your mortgage.
see you soon !!!!!!!!!

January 26 2011 at 7:20 PM Report abuse -3 rate up rate down Reply
lluthor3

What part of a drop in tourism and a home market that was remarkably overbuilt do you tea scammers not understand? The Bush/Cheney recession started this mess for the entire country.

January 26 2011 at 2:02 PM Report abuse -3 rate up rate down Reply
2 replies to lluthor3's comment
kevinthaas

if you look at all the states with the hightest UNENEMPLYMENT they all are run by DEMOCRATS period, -NEVADA , MICHIGAN CALIFORNIA , ILLINOIS

January 26 2011 at 3:34 PM Report abuse +2 rate up rate down Reply
picpaintbl@aol.c

as I said earlier when you lose your home I'm offering 10 cents on the dollar ,but then again someone like you I'd rather see you lose it and live in a homeless center. just you wait I'll be keeping my eye out looking for you 'IDIOIT'

January 26 2011 at 7:34 PM Report abuse rate up rate down Reply
bctarvin

Nevada folks were stampeded by the unions and those chicano's who believe in the liberalism of the democratic party voted for Sen. Reid and are getting what they deserve for such votes. My grandmothers were from mexico but they taught me conservatism and self reliance was honorable. It is the Mejicano who has to pay for high gas prices, corn products, beverage taxes, and many more IMPUESTO's that the democrats assess the people so that they can spend on subsidies, hand outs, union perks etc.We need all out drilling Raza, and stop making fuel out of corn and other grains. maybe then we as mejicano's can afford to take trips across town to visit our abuelas without spending our childrens future on gasoline. Viva nuestra raza pero sin "la gora en la mano" esperando un abraso de nuestros politicos que despues de los votos se olvidan de los barrios y nuestra hente.

January 26 2011 at 1:51 PM Report abuse +2 rate up rate down Reply
Bruce & Claudia

You wanted Reid and the illegals. Suck it up !

January 26 2011 at 12:50 PM Report abuse +7 rate up rate down Reply
Richard

Nevada...The unions 'mainly' destroyed you...'You Reap what you sow'...Also the voters that voted back in again Harry, must be nuts!

January 26 2011 at 12:35 PM Report abuse +9 rate up rate down Reply