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January unemployment rate sees slight increase to 7.1 percent
Nevada’s seasonally adjusted unemployment rate edged up slightly to 7.1 percent in January, from a revised 7 percent in December. Nevertheless it is 1.4 percentage points below the 8.5 percent rate for last January. Additionally, employers have added jobs relative to the previous year in 49 straight months.
Furthermore, in each of the past six months, year -over-year gains have been at least 40,000, said Bill Anderson, chief economist for Nevada’s Department of Employment, Training and Rehabilitation. In January, jobs increased by a seasonally adjusted 6,700 relative to December, leaving employment levels at their highest since October 2008.
“These numbers are a reflection of more Nevadans re-entering the workforce and seeking sustainable employment,” said Governor Brian Sandoval. “While the unemployment rate rose slightly, I am pleased to see that employers are regaining confidence and are steadily adding jobs to the economy. I am also encouraged that we have reached a record high number of employers in Nevada.”
Construction continues to lead the way in terms of percentage growth, up 7.9 percent over last year. The leisure and hospitality sector experienced the greatest nominal growth, up 16,600 relative to January 2014, for a growth rate of 5.2 percent, Anderson said.
“We think that job growth will continue through 2015, and, over time, that will put downward pressure on the unemployment rate,” Anderson said. “Clearly, the underlying trend in jobs is one of consistent improvement.”
The unadjusted unemployment rate in each of the state’s metro areas declined on a year-over-year basis.
The rate in the Reno/Sparks area declined to 7.4 percent, while the Carson City rate dropped to 8.5 percent. Rates in both areas fell 1.5 percentage points relative to last year. The unemployment rate in the Las Vegas-Paradise area dropped to 7.5 percent in January, down 1.4 percentage points from last year.
After annual revisions, the unemployment rate for all of 2014 came in at 7.8 percent, compared to the 7.7 percent originally reported. This increase was driven largely by stronger growth in the labor force than originally estimated, Anderson said. That growth carried over into the first month of this year. Due to the increase in those looking for work, the unemployment rate increased slightly in January, Anderson said.