Higher unemployment across the nation is causing problems for those looking for jobs in Las Vegas. Since the area relies heavily on tourism to generate work, the national recession has hit the area hard.
With fewer people having excess money to gamble or even vacation with, the city is practically bleeding jobs. Between November and December of last year, unemployment jumped 1.2 percent from 7.9 percent to 9.1 percent. Since January’s figures have yet to be released there is no telling how much more drastic this situation has gotten so far this year.
According to the Las Vegas Convention and Visitors Authority, 2008 was not a good year for the city. The volume of visitors fell by 4.4 percent to 37.5 million, which means that more Vegas jobs could soon be cut. The percentage of hotel rooms being filled in the area also dropped 4.4 percent, meaning that, on average, only 86 percent of the city’s rooms were filled at any given time. This caused the cost of a hotel room in the area to fall 9.8 percent to $119.19 a night.
The report cited a myriad of problems as the cause for the city’s suffering tourism industry. Some of these included the housing crisis, the rising price of gas, the credit struggling credit market and staggering unemployment rates. Despite all of this, Las Vegas remains the number one vacation destination in the country.
All of these factors have planned a huge part in rising unemployment rates statewide. Between November and December the state unemployment rate jumped 1 percent from 8.1 to 9.1 percent. Many experts expect that those seeking jobs in Nevada won’t have an easy time throughout the remainder of this year. According to MSNBC.com and Larry Mosley of the State Department of Unemployment, experts believe that the jobless rate will climb as high as 11.4 percent before it starts to decline again.
In December alone 128,100 Nevada residents claimed unemployment benefits. The 9.1 percent jobless rate is particularly shocking when compared to the fact that only several months earlier, in July, only 6.6 percent of residents were unable to find work in the state.
Many without work are no longer only concerned about finding a job in Nevada. The newest issue to arise is the fact that state’s unemployment fund is beginning to feel the strain of all of these new claimants. If the jobless rate continues to rise at the speed it is currently going at, some fear that it will be tapped out before the end of the year. According to the State’s Department of Employment, Training and Rehabilitation, there is only around $533 million left in the account. Mae Worthey, the Department’s spokesperson, said that is possible they will have to borrow federal funding in order to make sure that all claimants receive their benefits.
“Unfortunately, we are expecting the fund to be depleted by the end of the year, and this time next year we may be looking at a deficit in the fund and have to borrow from the federal government,” said Worthey, according to MSNBC.com. “But there is no concern that people won’t get paid. They will definitely get their benefits. It’s just that we may be forced to go to the federal government to get a loan in order to pay those benefits.”