Las Vegas Experiences Job Loss Amidst Lower Visitor Numbers

According to seasonally adjusted data released Thursday by the Nevada Department of Employment, Training and Rehabilitation, the Las Vegas area lost 4,300 jobs between July and August, marking a 0.4% decline. The sharp decrease in employment follows a significant drop in tourism during the summer months.

Las Vegas Jobs Dip Amid Slump in Tourism

David Schmidt, chief economist for the department, said in a news release that the report reflects a largely stationary labor market. “Private-sector employment fell by 6,000 jobs over the month, led by statistically significant declines in the construction and accommodation and food services industries,” Schmidt added. Interestingly, according to the department, employment levels across the state have remained virtually unchanged compared to the same time last year, despite the drop in Las Vegas City.

Nevada is not unique in this trend, as hiring has slowed across much of the country. According to a recent report from the US Bureau of Labor Statistics, nationwide employment “changed little” in August, with only 22,000 jobs added, and has remained relatively flat since April. As home to the majority of the state’s population, the Las Vegas Valley depends heavily on visitors who come to spend on dining, entertainment, gambling, nightlife, and conventions, which are all key drivers of the local economy.

Facing a range of financial headwinds and with President Donald Trump’s trade wars fueling broader economic uncertainty, fewer travelers are choosing to vacation in Las Vegas this year. At the same time, customers have been complaining about the rising costs of resort fees, parking, food, and other added costs, which have contributed to a sense of sticker shock, making Las Vegas a less affordable destination for many visitors. This has helped result in a diminishing number of visitors over the usually busy summer months.

Vegas Experiences Significant Tourism Decline

Approximately 22.6 million people visited Las Vegas between January and July this year. This is an 8% decline, or nearly 2 million fewer visitors, compared to the same period last year, according to the Las Vegas Convention and Visitors Authority. 

Schmidt pointed out that there hasn’t been a spike in new unemployment claims from workers in those sectors. Additionally, data on hours worked and average hourly wages have remained stable, suggesting continued demand for labor, he said.

Despite this, Las Vegas continues to have one of the highest unemployment rates among large metropolitan areas. As of July, the city’s unemployment rate stood at 6%, tying for the third-highest among US metro areas with populations over 1 million, according to the Bureau of Labor Statistics.

In an effort to attract more visitors, casino operators and other businesses have introduced discounts and special offers in recent months. However, for those feeling uncertain about their financial situation or job stability, skipping a trip to Las Vegas can be a simple way to cut expenses.