WIOA State Plan Common Elements

EmploymentandUnemployment

Provide an analysis of current employment and unemployment data, including labor force participation rates, and trends in the state.

Employment

As of August 2019, estimated seasonally-adjusted employment from the Current Employment Statistics (CES) program for Nevada showed 1,433,600 jobs in the state, an increase of 42,100 over the year and a growth rate of 3.0 percent, which was the fastest rate in the nation for the 11^th-consecutive month. Nevada’s employment reached a post-recession low in 2010, but has since grown at a fairly stable rate, surpassing the pre-recession peak employment level in 2016, and currently over 300,000 jobs higher than the recession low.

The rate of job growth seen in the state has run roughly double the rate seen in the nation as a whole from 2014 to 2019, and has exceeded the national rate for the past 85 months, mirroring the largely stable trend seen nationally for that time.

Job growth in Nevada is widely spread across a number of industries, with professional & business services (12,900), construction (9,700), manufacturing (6,400) and leisure & hospitality (6,200) all exceeding average annual job growth of 6,000 jobs over the last year.  During this time period, only mining has seen a decline on average, of merely100 jobs. A more detailed examination of the trends within particularly significant industries is presented in section (A)(i) below, outlining the current demand industries.  Overall, Nevada's employment growth is widely distributed across the industries. 

One particularly noteworthy trend in employment in the state is considering full-time and part-time work.  During the recession, full-time employment fell while part-time employment rose.  Although full-time employment has recovered, there has not been a corresponding decline in part-time employment.  However, considering the reasons people have for working part-time, there has been a rise in the share of part-time employment which has been a voluntary decision for those who want to work part-time, as opposed to those who cannot secure full-time employment.  From 1995 to 2008, roughly 80 percent of part-time employment was by choice.  During the recession, this proportion fell to nearly 60 percent, as a significant number of people secured part-time employment because that was all that they could find.  However, since 2011, the share of voluntary part-time work has been rising, and is back up to nearly 80 percent as of 2019.

Average weekly wages in the state have grown steadily following a period of stagnation from 2008 – 2012.  Beginning in 2015, weekly wages reported each quarter have generally risen by two to three percent over the year, reflecting rising demand for workers.

Turning to local areas within the state, every metropolitan statistical area (MSA) in the state has seen growth from 2015 to 2019, on average.  The Reno MSA has seen the fastest rate of growth, averaging 6.0 percent growth in 2019 while the Las Vegas MSA has added the most jobs, growing by an average of 24,900, year-to-date. As of August 2019, the Las Vegas MSA had 1,030,400 jobs, the Reno MSA had 259,000 jobs, and the Carson City MSA had 31,200 jobs.  For the twelve months ending March 2019, the average weekly wage in private employment in Clark County was $925 per week, compared to $957 in Washoe County and $907 in Carson City.

On a broader basis, looking at wages by county, weekly wages tend to be highest in rural counties with a high concentration in the mining industry.  In Eureka County, where weekly wages are currently over $2,000 per week, the mining industry comprises over 90 percent of all private sector employment reported in the Quarterly Census of Employment and Wages (QCEW).

Unemployment

From the early stages of the economic recovery through August 2019, Nevada has seen a long, steady drop in its unemployment rate, which measures the number of people who are unemployed and actively looking for and available for work compared to the total labor force.  From 2014 through 2019, while employment has grown at a steady pace the unemployment rate has declined from 8.2 percent to 4.1 percent.  This translates to a fall in the number of unemployed from 112,900 from January-August 2014 to 63,167 from January-August 2019.  Over the past five years while average job growth has remained relatively steady, the number of unemployed per job added has fallen significantly, meaning there are fewer potential candidates looking for work for each job being added.  In 2012 there were 6.5 unemployed people for every job added in Nevada over the course of the year. In 2014 that fell to 2.2, then fell again to 1.5 as of August 2019.

Nevada remains somewhat above the national unemployment rate, however, both rates have been moving largely sideways for the last year. Like many states, Nevada’s unemployment rate is less than half a percentage point above its all-time low rate, indicating that the current level of unemployment is largely structural, not cyclical.

Even with the positive economic trends that we have seen over the last several years, some demographic groups still have high unemployment rates.  The groups with the most frequent incidence of high unemployment among Nevada’s counties ( ie. those with high rates of unemployment in 10 or more counties according to the 2014-2018 rates from the American Community Survey – are: workers under 24, workers who are American Indian or Alaskan Native, workers whose family income is below the poverty level, workers with any disability, and workers with a high school diploma/equivalency or less. The following is a list of those groups that have notably high unemployment in each county as defined in statute, starting with the largest counties that overlap each of the state’s MSAs, and moving on to the rest of the counties in the state.

Clark County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24, years of age 25-29 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Black, American Indian and Alaska Native, Pacific Islander or Native Hawaiian, and two or more races.
• Gender groups exceeding at least one threshold: Female with children 0-5 years of age and Female with children 0-5 years of age and 6-17 years of age. 
• Education groups exceeding at least one threshold: Less than high school, high school or equivalent.
• Poverty status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Washoe County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Black, Hispanic, American Indian and Alaska Native, some other race, two or more races.
• Gender groups exceeding at least one threshold: Male, Female with children 0-5 years of age and 6-17 years of age.
• Education groups exceeding at least one threshold: Less than high school, high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Carson City

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age, 55-59 years of age
• Race / Ethnicity groups exceeding at least one threshold: Black, Hispanic, American Indian and Alaska Native, some other race.
• Gender groups exceeding at least one threshold: Female with children 0-5 years of age and 6-17 years of age.
• Education groups exceeding at least one threshold: Less than high school, high school diploma or equivalent.
• Poverty status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

For the remainder of the State, the summary of available information is as follows:

Churchill County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age, 25-29 years of age, 45-54 years of age.
• Race / Ethnicity groups exceeding at least one threshold: American Indian and Alaska Native, Asian.
• Gender groups exceeding at least one threshold: Female with children 0-5 years of age.
• Education groups exceeding at least one threshold: Less than high school, high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Douglas County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age, 30-34 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Black, Hispanic, American Indian and Alaska Native.
• Gender groups exceeding at least one threshold: Male
• Education groups exceeding at least one threshold: Less than high school, high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: None

Elko County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age, 75+ years of age
• Race / Ethnicity groups exceeding at least one threshold: American Indian and Alaska Native, Pacific Islander or Native Hawaiian, two or more races.
• Gender groups exceeding at least one threshold: None.
• Education groups exceeding at least one threshold: Less than high school, high school or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Esmeralda County

• Age groups exceeding at least one threshold: 25-29 years of age, 55-59 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Hispanic.
• Gender groups exceeding at least one threshold: Female.
• Education groups exceeding at least one threshold: Less than high school.
• Poverty Status groups exceeding at least one threshold: None.
• Other group exceeding at least one threshold: None.

Eureka County

• Age groups exceeding at least one threshold: None.  
• Race / Ethnicity groups exceeding at least one threshold: None.  
• Gender groups exceeding at least one threshold: None.
• Education groups exceeding at least one threshold: None.
• Poverty Status groups exceeding at least one threshold: None.
• Other group exceeding at least one threshold: None.

Humboldt County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age
• Race / Ethnicity groups exceeding at least one threshold: Hispanic, American Indian and Alaska Native.
• Gender groups exceeding at least one threshold: Female.
• Education groups exceeding at least one threshold: Some college or Associate degree.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: None.

Lander County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age, 30-34 years of age.
• Race / Ethnicity groups exceeding at least one threshold: American Indian and Alaska Native, Some other race.
• Gender groups exceeding at least one threshold: Female with children 0-17 years of age, Female with children 0-5 years of age, Female with children 0-5 years of age and 0-17 years of age .
• Education groups exceeding at least one threshold: high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Lincoln County

• Age groups exceeding at least one threshold: 16-19, 35-44, 55-59.
• Race / Ethnicity groups exceeding at least one threshold: None.
• Gender groups exceeding at least one threshold: Male.
• Education groups exceeding at least one threshold: None.
• Poverty Status groups exceeding at least one threshold: None.
• Other group exceeding at least one threshold: People with any disability.

Lyon County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age, 25-29 years of age, 75+ years of age.
• Race / Ethnicity groups exceeding at least one threshold: Black, American Indian and Alaska Native, Asian, Pacific Islander or Native Hawaiian, two or more races.
• Gender groups exceeding at least one threshold: Female.
• Education groups exceeding at least one threshold: high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: None.

Mineral County

• Age groups exceeding at least one threshold: 16-19 years of age, 25-29 years of age, 30-34 years of age
• Race / Ethnicity groups exceeding at least one threshold: American Indian and Alaska Native.
• Gender groups exceeding at least one threshold: Male.
• Education groups exceeding at least one threshold: high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: None.

Nye County

• Age groups exceeding at least one threshold: 16-19 years of age, 20-24 years of age,30-34 years of age, 65-74 years of age, 75+ years of age.
• Race / Ethnicity groups exceeding at least one threshold: White, American Indian and Alaska Native.
• Gender groups exceeding at least one threshold: Female, Female with children 0-17 years of age, Female with children 0-5 years of age, Female with children 6-17 years of age.
• Education groups exceeding at least one threshold: Less than high school.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Pershing County

• Age groups exceeding at least one threshold: 16-19 years of age, 25-29 years of age, 45-54 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Hispanic, American Indian and Alaska Native, some other race.
• Gender groups exceeding at least one threshold: Female with children 0-17 years of age, Female with children 6-17 years of age.
• Education groups exceeding at least one threshold: Less than high school.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

Storey County

• Age groups exceeding at least one threshold: 20-24 years of age, 45-54 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Black.
• Gender groups exceeding at least one threshold: Male.
• Education groups exceeding at least one threshold: Bachelor’s degree or higher.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: None.

White Pine County

• Age groups exceeding at least one threshold: 16-19 years of age, 30-34 years of age, 65-74 years of age.
• Race / Ethnicity groups exceeding at least one threshold: Hispanic, American Indian and Alaska Native, Asian, Pacific Islander or Native Hawaiian.
• Gender groups exceeding at least one threshold: Female with children 0-17 years of age, Female with children 6-17 years of age.
• Education groups exceeding at least one threshold: Less than high school, high school diploma or equivalent.
• Poverty Status groups exceeding at least one threshold: Below poverty level.
• Other group exceeding at least one threshold: Individuals with any disability.

In the state, the lowest overall unemployment rates are in the northern counties, while the highest rates are in Nye, Lyon, and Esmeralda counties. Nye and Lyon counties were particularly hard-hit by the 2007 recession because of the impact on local investment and the housing market, but each has seen significant improvement.  The lowest unemployment rate is in Eureka county, which is falling into the two percent range, reflecting a very tight labor market.

LaborMarket Trends

Across the state, the broadest trend is one of growth overall, with employment rising in most industries, flat in a few industries, and only one industry showing significant decline. In the state as a whole as well as the Las Vegas and Reno MSAs, total nonfarm employment shows consistent growth, with each month leading the 12-month average, in turn leading the 3-year average higher.  The following charts demonstrate several employment trends for each industry.  The dark blue line indicates monthly employment estimates.  The dark and light shaded areas indicate three and ten year high and low values, respectively.  The red line represents the one-year moving average, and the gold line indicates the three-year moving average.

Similar trends are seen in other high-level aggregations, including the private sector, the goods-producing sector, and the service providing sector.  Industries with specifically noteworthy trends are highlighted below:

Mining

The mining industry is highlighted as a targeted industry in the state, and also is one that is largely flat dating back to 2014.  This industry will need to see prolonged increases in the prices of mined metals to see a significant shift in employment levels.

Manufacturing

The manufacturing industry has seen substantial growth statewide in the past four years due to a number of investments in both the northern and southern areas of the state.

Taxi and Limousine Service

The taxi and limousine service industry has been in significant decline since the end of 2015, particularly in Las Vegas where it has shed roughly half of its total employment. While some of the former workers in this industry may be working as independent contractors and not included in these payroll employment estimates, there is not much firm data to describe the extent to which that is or is not happening.

Retail Trade

One emerging trend that may prove to be particularly noteworthy is that retail trade employment in Las Vegas which is showing some signs of weakness, falling over the year with both seasonal highs and lows coming in lower in the current year than the prior year.  This trend is not similarly reflected in the statewide numbers, in data for the Reno MSA, in other traditionally low-wage industries like limited service restaurants, or in the fastest-growing MSAs of other state with a population of one million or more, so there is no explanation for what is leading this decline as of August 2019.  Additional data will become available in future months to help identify whether this is limited to a single industry, or a broader weakness in retail.

Casino Hotels

Finally, employment trends in the casino hotel industry are worth noting because of the high concentration in employment in this industry in Nevada, as well as the particular identification this industry has with Nevada.  For much of the last two decades, employment in this industry has largely trended fairly flat.  If current trends were to continue, food service employment will overtake casino hotel employment within the next five to 10 years as the dominant industry within the accommodation and food service industry.

​​​​​​EducationandSkills Levels of the Workforce

When comparing educational attainment to current occupational staffing patterns, Nevada’s current workforce indicates that there are more advanced degree holders (Bachelor’s degree or higher) in the labor force than occupations that are estimated to require that level of education.  In particular, there are 327,687 individuals in the labor force with a Bachelor’s degree or more, while there are only 227,870 jobs which require that level of education. Interestingly, the data indicates that nearly 33 percent of the workforce, primarily those with some college but less than a Bachelor’s degree, may be working in occupations that require less formal education than they possess. It is important to note that although there seems to be an excess in education level, this does not take into account businesses using education as a sorting tool for hiring, mismatches in degree subject compared to available jobs, or the needs of emerging occupations/industries that are not currently reflected in the staffing patterns. These trends have also not been compared to national trends to determine if this is a local issue, or a national development.

SkillGaps

Gaps between current and future skill demands have not yet been projected, but Nevada is in the process of identifying, analyzing, assessing said demands. There is significant discussion around this topic in the labor market information and workforce development community as all interested parties attempt to assess the impact of automation and artificial intelligence on workforce skill needs in the long term, while feedback at industry sector council meetings has emphasized the need for soft skills – workers who can communicate professionally, show up for work, and perform the basic tasks common to many occupations. Further work needs to be done in this area including the development of career ladders to help identify which occupations may provide common points of transition between major occupational groups in the state.