1. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada’s Labor Market: A Review and Outlook Nevada Taxpayers Association March 2010 Department of Employment, Training & Rehabilitation Larry J. Mosley, Director Cindy Jones, Deputy Director Bill Anderson, Chief Economist

2. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada’s Population Growth was the Strongest in the Nation for Years Prior to the Current Recession  As economic conditions have dried up, population growth has come to a halt.

3. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency This Recession is Different…Employment has Nosedived  Historically, employment has simply flattened out during recessions. This time around, it has plummeted.

4. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Job Readings have Dropped by 140,000 Since December 2007  400,000 jobs were created from 1997- 2007.

5. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Unemployment has Increased to Record Levels  The jobless rate came in at 11.8% this year. Prior to this recession, the record- high was 10.7% in the early-80s.

6. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency The Unemployment Rate has Increased Nearly Eight Percentage Points Since December 2007  This is much more pronounced than during the previous three recessions.

7. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada has been Hit Relatively Hard by this Recession  Nevada lost 6% (probably more) of its jobs in 2009 compared to a 4.3% loss nationwide.

8. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency This Recession has Impacted all Sectors of Nevada’s Economy  In the past two years, construction has lost as many jobs as were gained in the previous decade.

9. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency 2009 Trends in Largest Industries  Leisure and Hospitality…down 6.5% (21,800 jobs).  Trade, Trans., & Utilities…down 3.3% (7,600 jobs).  Professional and Business Services…down 7.1% (10,800 jobs).  Construction…down 23% (26,900 jobs).

10. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada’s Economy has Become More Diversified Over Time as Measured by Job Shares  Of special note is the recession’s disproportionate impact on the construction sector.

11. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Total Claims Activity has been on an Uninterrupted Rise over the Past Two Years  Not all of the jobless receive unemployment insurance benefits, but the gap has narrowed.

12. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency The Employment Outlook is Weak  Job declines are expected through 2011… -9.5% in 2009, -5.8% in 2010, -2.2% in 2011…before a 1.6% gain in 2012.

13. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Accommodation and Food Services Employment is Expected to Stabilize Beginning in 2010  Negative forces impacting the industry as a whole are offsetting the positives associated with the opening of City Center.

14. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Weakness in both Residential and Commercial Development will Continue to Hold Back Construction Employment  Employment will bottom out at approximately 50,000 compared to peak readings of about 150,000.

15. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency I’ll End on a Qualified Positive Note…There are Scattered Signs of Improvement and Stability  Las Vegas visitor volume has increased four consecutive months, while Southern Nevada home resales rose 50% in 2009.  Other trends point to a moderation in the rate of economic decline, such as initial claims for unemployment insurance, taxable sales, and gaming activity.

16. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Las Vegas Visitor Volume Growth: 2009 vs. 2008

17. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Southern Nevada Recorded Resales (January 2000 = 100)

18. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada Initial Claims for Unemployment Insurance: 2009 vs. 2008

19. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada Taxable Sales Growth: 2009 vs. 2008

20. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Nevada Gaming Win Growth: 2009 vs. 2008

21. The Nevada Department of Employment, Training and Rehabilitation is a proactive workforce & rehabilitation agency Revisiting the Two Overriding Themes  We are in unprecedented times.  Once a recovery does take hold, the economic landscape will be different…a repeat of the boom- like conditions of just a few years ago will not be repeated…future growth will perhaps best be described as relatively modest.