Carson City unemployment drops to 12.5 percent after 300 jobs added

With 300 jobs added to the labor force, the unemployment rate in Carson City fell to 12.5 percent in October from 13.3 percent in September, according to a report released today by the Nevada Department of Employment, Training and Rehabilitation.

Carson City area employers added 300 jobs in October, and are down just 500 or 1.7 percent from the same month a year ago, the report states.

"We are delighted. It is always a good sign when new businesses come in such as Kohl's and Big Lots and hire people," said Ronni Hannaman, executive director of the Carson City Chamber of Commerce. "The retail community has pulled us out of some of the hiring doldrums."

Statewide, Nevada's unemployment fell for the first time during the recession to 14.2 percent, down from 14.4 percent in September, the department reported. It was the first time unemployment has seen a decline since December 2005, when employment had tapped to a low of 4.2 percent. Since then, the unemployment rate soared with an increase of about 137,000 jobless workers in the state.

While this is good news, it doesn't mean that Nevada is on its way to a significant rebound, said Bill Anderson, DETR chief economist.

“This is a clear sign that the recession’s grip on Nevada may finally be loosening,” Anderson said. “However, though the recession appears to be bottoming out, especially with regard to unemployment, many key industries remain weak. The number of jobs being eliminated is stabilizing, but there is no sign of major job growth on the horizon.”

Unemployment in Nevada may have reached its peak, but it isn't expected to fall much in the year ahead, Anderson said.

“Through October, the unemployment rate is averaging 13.9 percent for the year,” Anderson said. “The average unemployment rate in 2011 will be similar to 2010, but should decline slowly throughout the year.”

Another contributing factor to the fall in the unemployment rate is the decline in the number of individuals looking for employment in the state.

“Most likely, a number of workers have moved out of the state, while some have become discouraged and stopped looking for work,” Anderson said. “Results of the household survey found a significantly lower labor force, with the majority of the reduction occurring via a decline in the number of unemployed Nevadans.”

In October, the number of people unemployed fell by roughly 14,400, while the labor force, which includes those unemployed and employed, contracted by 25,900.

Nevada’s total nonfarm employment increased by 3,100 jobs in October. The private sector added 900 jobs, while the public sector added 2,200 jobs due to seasonal gains. Professional and business services added 800 jobs, while education and health services industries added 700 jobs.

And, the construction industry added 400 jobs. The largest employment losses came from the leisure and hospitality industry with a loss of 1,000 jobs, which weren’t completely unexpected given the end of the summer tourism season. Employment also declined in financial activities and other services industries, losing 200 and 300 jobs respectively.

Across the state, regional labor markets showed modest improvement in October. Employment in the Las Vegas-Paradise area increased by 1,600 jobs, though over-the-year, employment is down 25,100 or 3.1 percent. The Reno-Sparks MSA employment increased by 1,300, but is still down 5,400 jobs or 2.8 percent from October 2009.

October typically kicks off the holiday hiring season. In recent years though, holiday hiring has been dampened by the recession.

“Based on long term seasonal factors, we would expect to see employment increase by roughly 5,000 workers between September and December,” Anderson said. “Last year, employment actually fell by 200 jobs overall due to the recession. All seasonal improvement was essentially wiped out by the recession. This year, given moderating job losses, it is expected that seasonal hiring will improve over last year, but will not approach pre-recession trends. So far, hiring is moving in a positive direction, retail trade employment was up 600 in October over September.”