Industries with Largest Growth
The accommodation and food services sector contracted considerably during the recession, marked by a number of casino closures and layoffs. This year however, the industry has shown improvement and should continue to add employment. About half of all employment growth in Nevada in recent months has come from the accommodation and food service industry. Prospects look promising given an improving national labor market situation and rising consumer confidence. International visitation will increase so long as the value of the dollar remains weak, making popular destinations like Las Vegas, Lake Tahoe, and Reno more affordable for foreign travelers. Employment in the accommodation and food service industry will increase by 1.4% in 2011, 1.6% in 2012, and 1.7% in 2013. This will be a total of 13,700 new jobs for the forecast period.
Mining has remained relatively strong due to record setting gold prices. The mining industry has benefited from global and financial uncertainty, making it a safe market for investment. It will remain so, as long as current conditions persist. Mining companies are taking advantage of high gold prices by investing more on commodity exploration or acquiring exploration companies for their vast ore deposits. The mining industry will continue seeing employment growth while gold prices remain high. Employment in this sector will increase by 3.7% in 2011, 4.0% in 2012, and 4.1% in 2013. Total employment in this sector will increase by about 1,500 jobs for the forecast period.
Retail trade has improved over the last year. Consumers are moving into a better position given falling unemployment and improved job prospects. Pent up demand will start to drive sales higher. Money that consumers were putting towards savings or paying down debt during the downturn should slowly work its way back into the economy. Retail sales in Nevada have been growing as seen by taxable sales reports. Collections are up 5.0 percent through the first 8 months of the fiscal year. Employment in this industry will continue to grow, increasing by 0.8% in 2011, 0.7% in 2012, and 0.7% in 2013. This will be a total increase of 2,800 jobs for the forecast period.
Health care and social assistance continues to perform well despite some challenges. While Nevada’s hospitals struggle given recessionary and programmatic difficulties, smaller businesses continue to do well during the recession. Doctor’s offices, dentists and optometrists will continue to add employment during the projection period. Demand for health care services will continue to grow given the aging baby boom population. Employment is predicted to increase by 1.8% in 2011, 2.0% in 2012, and 2.4% in 2013. Total employment for this forecast period will increase by about 6,100 jobs.