Las Vegas Jobs in Construction Declined in July

The delay of several commercial real estate projects has had a serious effect on Las Vegas jobs in construction as was expected. In July this industry’s unemployment rate rose to 7.4 percent in the area.

According to the state Department of Employment, Training and Rehabilitation, new developments on the city’s famous strip have been injured by the credit crisis that most of the nation is suffering from.

As of a year ago, the area’s construction industry employed almost 103,800 individuals. In the July this figure fell to approximately 94,600. The positions lost when Boyd Gaming announced on August 1st that their Echelon Hotel and Casino would have to wait were not figured into this total. Because of this, the final figures for August will likely show a continued decline.

“Hopes for an economic turnaround in 2009 had been pinned to the new construction jobs the project would create,” said Bill Anderson, chief economist for the department. According to him, such delays have served to lower expectations.

“On the positive note, projects with financing in place prior to the crisis appear to be moving forward despite reports of a cash crunch,” said Anderson. City Center, Fontainebleau and Cosmopolitan, all of which are scheduled to open within the next two years, remain a unaffected.

Overall unemployment in the area rose form 6.5 percent to 6.8 percent in July. This is the highest the jobless rate has been since June 1994 when it peaked at 6.8 percent.

Nevada as a whole is not fairing much better. The state’s unemployment rate also rose to a 6.6 percent average in July, which is the highest the statistics have been since July of 1993. Approximately 94,900 residents are without work, when is up drastically from the 67,700 jobless individuals of a year ago.

Aside from the credit issues that are effecting the construction industry, Anderson believes that seasonal layoffs have added to the area’s economic slump. On top of this high gas prices are discouraging consumers from making purchases that extend past basic necessities.

Anderson expects that the pain at the pump will soon ease a little as fuel prices are expected to decrease somewhat in the next few months. Hopefully, consumers will spend the extra money elsewhere, which would help to stimulate the economy somewhat.