Growth, both in the U.S. and Nevada, seems to be decelerating. However, most importantly, conditions remain elevated. Jobs are abundant, though average wages adjusted for purchasing power have not improved. This led more than half of respondents to a recent national survey to report they are not better off than previously. In addition, gasoline prices and global political events contribute to pessimism.
Yet, amid these conditions, U.S. unemployment stands at a favorable 4.6 percent. With more “discouraged workers,” that is, a lower percentage of the population in the workforce than during the expansion of the 1990s, things have been better. Still, Nevada unemployment is not as serious a problem as it was locally in other times and as it is currently elsewhere in the U.S.
Inflation, as measured by the most recent consumer price index, is at 4.3 percent. Removing oil and food from the calculations yields an inflation measure of 2.6 percent, a level deemed low enough to leave many divided over the need for further interest rate increases by the Fed to combat future inflation.
Nevada continues to experience strong job growth at 5.0 percent, which exceeds the U.S. rate of 1.4 percent, attesting to the continued strong performance of the Silver State’s economy. U.S. manufacturing continues to adjust to global competition, resulting in fewer manufacturing jobs, although there is strong job creation throughout Nevada’s manufacturing sector.
The Nevada travel and tourism industry, particularly along the Las Vegas Strip, continues to flourish and add capacity. The abundance of foreign capital has fed construction activity throughout the U.S., as well as significant tourism construction in the Silver State.
Construction jobs as a percent of total employment have reached new peaks. With rates of growth in residential construction slowing (permitting is down in Clark and Washoe counties), while other construction activity remains robust (commercial permitting is up in both of Nevada’s urban centers), the construction outlook remains bright.