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Wednesday, January 6, 2010

 

Nevada Jobs Situation to Remain Bleak

With the state's economy one of the worst hit by the economic recession, those searching for Nevada jobs won't easily find reprieve this year.

Nevada saw some relief during November 2009, as the state's unemployment rate declined from 12.9 percent to 12.3 percent, but officials say unemployment is declining for the wrong reasons. In addition, jobs were still lost on a monthly and yearly basis.

The state had a total non-farm employment of 1,166,000 workers during November, according to the U.S. Department of Labor Bureau of Labor Statistics. This is down from 1,174,800 workers during October and a 6.1 percent decrease from November 2008.

As evidenced by the continuing decline in employment, many economists are predicting that, while the rest of the nation begins to recover, Nevada will continue to fall behind, and may not see any improvement until the middle of the year.

"It projects to be a slow, anemic recovery," Tom Cargill, an economist at the University of Nevada, Reno, told The Associated Press. "If I were a private businessman, I wouldn't be hiring or expanding. I just don't see much positive out there."

In fact, many economists are predicting that Nevada will see a jobless recovery, meaning there will be no employment growth as companies get by with their existing staff members.

"So those who remain are working harder, and we're seeing a huge increase in productivity," Cargill said. "But it's not sustainable."

Bill Anderson, an economist with the Nevada Department of Employment, Training and Rehabilitation, predicts the state's economy will "tread water through much of 2010," and will be lucky to see outright growth by late 2010.

"As a result, countless Nevadans will struggle over the next several months," he said, adding that any employment growth this year will be an improvement from 2009.

Elliott Parker, an economist with UNR, predicts that Nevada's unemployment rate will increase through spring if the state cuts jobs because of its impending budget deficit. However, he does not expect the unemployment rate to reach more than 14 percent.

"That's partly because I expect people to leave for jobs that are opening elsewhere," he noted.

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