Nevada Unemployment Rate Near Thirty Percent; Employment Down 244,800 in April
Submitted by Kelsey Penrose on Fri, 05/22/2020 - 9:47am
According to the Nevada Department of Employment, Training and Rehabilitation’s (DETR) April 2020 economic report, employment in Nevada is down 244,800 jobs over the month and the unemployment rate rose to 28.2 percent.
This report is the first report which covers the period affected by the COVID-19 public health emergency and shows the impact of temporary business closures in the state.
"Nevada is facing record high unemployment and the sheer numbers are difficult to comprehend. I am so pleased that DETR staff is working so hard to connect Nevadans to their benefits during this time, paying out more than 80 percent of eligible claims week over week," said Gov. Sisolak. "Nevada is working diligently to get people back to work as fast as possible, in a safe and responsible manner."
DETR’s report also notes that employment is down 254,800 over the year, a growth rate of -18 percent.
Nevada’s employment dropped to levels last seen in 2013 and realized the largest over the month and year decline on record which dates back to 1990.
The State’s unemployment rate is 28.2 percent this month, up 21.3 percentage point from March and up 24.2 percentage point when compared to last April.
Nevada’s Unemployment Insurance claims saw an increase of 197,067 claims, or 1,955 percent, from the same month a year ago. Initial claims are nearly six times the previous high set in December 2008, when the State saw 36,414 initial claims.
“The numbers in this month’s report, while sobering, do not come as a surprise. Our weekly unemployment claim report has shown a significant impact to the service industry in Nevada, and estimates of unemployment in the state are in line with our data on people filing for unemployment insurance. There is no precedent for data like this, neither the magnitude of the shift nor the speed with which it has happened. Because this is largely driven by policy response designed to prevent the spread of COVID-19, as businesses in the state are allowed to reopen we should expect to see a corresponding decline in the number of people unemployed as Nevadans return to work” said David Schmidt, Chief Economist for DETR. “Employment shifts also show the impact of COVID-19 in the state, with an 18% drop in total employment over the year. Private sector employment saw a 20% drop and public sector employment realized a reduction of 3.2% in the state. Leisure and hospitality was, by far, the most affected industry this month and dropped to employment levels last seen in 1993, nearly 30 years ago.”
Additional April Report Highlights:
- Prior to this month, the largest over the year decline in employment was 10.3 percent in 2009 during the great recession.
- Nevada’s over the year decline in employment this month was over five percent higher than the nation.
- The industries to lose the most jobs were the accommodation and food service industry (-40.9%), the administrative support industry (-28.2%), and the other services industry (-24.8%).
- Over the year, the federal government (4.7%), as well as the finance and insurance (+0.5%) and construction (+0.1%) managed to add jobs.
- Leisure and hospitality is at its lowest employment level since November 1993.
- The unemployment rate in Nevada moved much higher than the national rate in April, rising to 28.2% on a seasonally adjusted basis, and 29.8% on an unadjusted basis; the national rate was 14.7% adjusted, 14.5% unadjusted.
