August jobs report has Las Vegas tourism insiders concerned about economic slowdown
LAS VEGAS (NBC, KYMA/KECY) - The latest jobs report from the Bureau of Labor Statistics has Las Vegas tourism insiders concerned about an economic slowdown.
"No industry in Las Vegas is recession proof," said Jeremy Aguero, principal analyst for Applied Analysis.
Aguero says a monthly jobs report, only yielding an increase of 22,000 jobs across the country, is the rest of the country following Las Vegas' lead of a recent economic slowdown.
He cited dipping tourism numbers in Las Vegas over the last several months, but the latest sign of economic distress is Spirit Airlines' recent decision to cut flights, including several locations in and out of Las Vegas.
Aguero also says less tourists, less money.
"I am much more concerned about the ripple effects associated with that. Everyone of those seats that does not come to Las Vegas is a little more than a thousand dollars that is not being spent on hotel rooms and gaming and eating and drinking and shopping in our stores. And that means you have a lot greater an effect associated with that."
Jeremy Aguero, principal analyst, Applied Analysis
While Americans from other states continue to move to Nevada, Aguero says construction is slowing as well.
"We are seeing signs that the labor market is weakening," said Gokce Soydemir, economics professor at Stanislaus State University, who says problems are on the way across multiple industries in southern Nevada.
With hospitality and construction stealing the spotlight, the growing warehousing industry may be in trouble as well saying if less people are buying, there are less jobs needed to produce.
However, Soydemir agrees with Aguero, and says the warehousing and wholesale will come after retail and hospitality, which is the bulk of Nevada's workforce.
The Nevada Department of Employment, Training and Rehabilitation estimates more than 365,000 Nevadans work in hospitality.
"Certainly, it falls under those categories and there is reason to worry, to be concerned about that," Soydemir explained.
Nevada as a whole already in a difficult position for employment.
Most economists would suggest 5% is a target rate, but Nevada sits at 5.4% according to the July numbers. That percent is third worst in the country only ahead of California and Washington D.C.
"When you have a state like Nevada, which has got the third or fourth highest unemployment rate in the United States, it is something we ought to be paying attention to," Aguero expressed.
