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Nevada Economy in Brief April 2020 a Monthly Review of Workforce and Economic Information

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Nevada Economy in Brief April 2020 a Monthly Review of Workforce and Economic Information Nevada Economy In Brief April 2020 A Monthly Review of Workforce and Economic Information Economic Summary Economic Indicators In this release, we provide up- preliminary Current Employment UNEMPLOYMENT RATES April 2020 Nevada* 28.2% dates on our primary employment, Statistics (CES) estimates show Las Vegas MSA 33.5% unemployment and unemploy- that seasonally adjusted employ- Reno-Sparks MSA 19.6% Carson City MSA 21.4% ment insurance programs. This ment decreased by 244,800 from United States* 14.7% month’s report is the first monthly March to April. Job losses impact- JOB GROWTH (YOY) April 2020 employment and unemployment ed all industries in the State, par- Nevada* -18.0% report which really captures the ticularly the Leisure and Hospital- Las Vegas MSA* -20.8% Reno-Sparks MSA* -9.9% impact of COVID-19 on Nevada’s ity and other service sectors. The Carson City MSA* -12.4% labor market. This data reflects construction industry was the only United States* -13.4% the employment status of individu- industry to realize an increase of als as of the week of April 12-18. employment over the year and GAMING WIN (YOY) March 2020 Nevada -39.6% added 500 jobs. The private sec- Clark County -38.1% Information on how to file an un- tor realized a decrease of 235,800 Washoe County -52.9% employment insurance claim, jobs in April while the public sector where to get updates from DETR, realized a decrease of 9,000 jobs. TAXABLE SALES (YOY) February 2020 or what other services are avail- (Refer to Figure:1) Nevada 5.6% able from the department can be Clark County 6.2% Washoe County 4.9% found at the end of this write-up. Nevada’s seasonally adjusted Additional labor market informa- employment total is 1,159,800 *Seasonally Adjusted tion can be found on our website jobs in April. This is lowest em- www.nevadaworkforce.com. The ployment level we have seen in Unemployment Rate by County Pandemic Unemployment Assis- the State since January of 2013, tance (PUA) program is now live when employment was 1,158,800. and accepting applications. Those Total employment declined by 18 Humboldt Elko who qualify for PUA assistant can percent over the year, the larg- access the website following the est decline seen in series history Pershing link below: dating back to 1990. The nation https://detr.nv.gov/Page/ also realized the largest decline Washoe Eureka Pandemic_Unemployment_ in employment over the year in Churchill White Storey Pine Assistance(PUA) series history, decreasing by 12.9 Lyon Lander percent. Nationally, employment Mineral Nye Employment growth for this period was the Carson slowest it’s been in series history Douglas Esmeralda April Employment Situation as well. (Refer to Figure:2) Lincoln As the impact of the COVID-19 1Non-seasonally adjusted em- Less Than or Equal to 6.0% pandemic and associated busi- ployment in Nevada declined over Between 6.1% and 11.9% ness closures set in, employment1 the month by 238,00 jobs in April. Clark in Nevada fell drastically. April Seasonal adjustment subtracts Between 12.0% and 17.9% 1 Non-seasonally adjusted employment in Nevada declined over the month by 238,000 jobs in April. Seasonal adjustment sub- Between 18.0 and 23.9% tracts out the normal seasonal changes to better understand the underlying shifts in employment. Typically, from March to Between 24.0 and 29.9% April we would expect the state to add 6.800 jobs. The difference between the actual change and the expected change in jobs is reported as the seasonally adjusted employment level which shows a decrease in the underlying trend in employment from Greater Than or Equal to 30.0% March to April. NevadaWorkforce.com RESEARCH Nevada’s premier source of & workforce and economic @NVLaborMarket ANALYSIS information and analysis P: (775) 684 - 0450 Economic Summary Economy in Brief April 2020 out the normal seasonal changes to better under- stand the underlying shifts in employment. Typi- cally, from March to April we would expect the State to add 6,800 jobs. The difference between the actual change and the expected change in jobs is reported as the seasonally adjusted em- ployment level which shows a decrease in the underlying trend in employment from March to April. UI Claims Don’t Compare to CES Employment Losses It is important to note that the CES survey defi- nition looks at employment for the pay period including the 12th of the month. If someone receives pay for any portion of that pay period, then they are counted as employed. As several businesses (at least in the short term) have de- cided to continue paying staff that are unable to work, it is important to note that these employ- Figure 3 ees have been counted as employed in the CES employment estimates. This can result in notice- able differences when comparing CES data to other estimates of the labor force. For the household and establishment surveys, the data for a given month relate to a particular April 2020 (employment in 000) Last �me Last �me monthly Last �me monthly Industry Employm Monthy Monthy % Date Employm Date Monthly Date Monthly ent Level Change Change (M/Y) ent Level (M/Y) Change (M/Y) Change Total Nonfarm 1159.8 -244.8 -17.4% Jan-13 1158.8 Oct-01 -17.0 Oct-01 1.6% Mining and Logging 14.1 -0.4 -2.8% May-17 14.0 Apr-00 -0.6 Apr-00 -5.3% Construction 95.5 -7.8 -7.6% Apr-19 95.0 Jan-10 -5.4 Jan-10 -8.0% Manufacturing 54.6 -4.3 -7.3% May-18 54.5 Apr-03 -1.3 Jan-09 -2.9% Trade, Transportation, and Utilities 219.8 -34.8 -13.7% Apr-13 218.9 Dec-08 -2.9 Dec-08 -1.3% Information 15.1 -0.5 -3.2% Apr-17 14.9 Jul-14 -1.6 Oct-91 -12.6% Financial Activities 67.6 -0.8 -1.2% Jan-19 67.5 Jan-09 -1.1 Jan-09 -1.9% Professional and Business Services 158.8 -39 -19.7% Sep-14 158.3 Oct-08 -5.8 Oct-08 -3.8% Education and Health Services 128.7 -16.3 -11.2% Sep-16 128.4 Oct-19 -0.8 Jun-92 -1.8% Leisure and Hospitality 216.3 -122.2 -36.1% Nov-93 211.7 Oct-01 -11.2 Oct-01 -3.7% Other Services 31.2 -9.7 -23.7% Nov-03 31.1 Jan-05 -1.2 Jan-05 -3.5% Government 158.1 -9 -5.4% Jun-16 155.0 Jun-00 -6.2 Jun-00 -5.0% NevadaWorkforce.com Department of Employment, @NVLaborMarket Training & Rehabilitation Economic Summary Economy in Brief April 2020 week or pay period. In the household survey, the reference period is generally the calendar week that contains the 12th day of the month, in this case April 12–18. In the establishment Employment by Industry: April 2020, 10 Year High & Low survey, the reference period is the pay period 400 that includes the 12th of the month, regardless 350 356.4 of the length of the pay period. (The length of the reference period does vary across businesses 300 263.2 in the establishment survey; one-third of busi- 250 nesses have a weekly pay period, slightly over 209.3 216.3 200 204.5 40 percent a bi-weekly, about 20 percent semi- 167.1 monthly, and a small amount monthly.) 150 146.4 147.9 134.9 100 103.3 100.9 Every week, the Department of Labor’s Employ- 70.5 59.9 50 49.9 52.2 ment and Training Administration (ETA) reports 42.2 37.7 31.2 1115..98 1126..42 the number of people filing initial and continuing 0 claims for UI benefits. Because the UI claims data are a weekly series, they can capture the impact of shocks more quickly than the BLS monthly household and establishment surveys, such as the CES survey, particularly when these shocks hit between survey reference periods. Currnent Month 10 Year High 10 Year Low For more information please follow the link listed below: https://www.bls.gov/cps/employment-situation- covid19-faq-april-2020.pdf Great Recession Employment Impacts COVID-19 Pandemic Employment Impacts % Jobs % Jobs lost Change April 2020 Lost/Below Change Pre-Great recession (Peak- from Trough Previous from Sector Peak Trough (low) Trough) Peak Pre-COVID-19 Peak (low) Peak Peak Professional and business services 1 61,800 Feb-07 132,500 Jul-09 2 9,300 18% 204,500 Jan-20 158,800 45,700 22% Other services 37,500 Jan-08 32,000 Oct-11 5,500 15% 4 2,200 Oct-18 31,200 11,000 26% Trade, transportation, and utilities 2 35,200 Dec-07 209,600 Mar-10 2 5,600 11% 263,200 Oct-19 219,800 43,400 16% Leisure and hospitality 3 42,900 Dec-07 304,000 Nov-09 3 8,900 11% 356,400 Feb-19 216,300 140,100 39% Financial activities 65,800 Dec-06 52,400 Jun-11 1 3,400 20% 7 0,500 Dec-19 67,600 2,900 4% Manufacturing 50,900 Sep-06 37,600 Oct-10 1 3,300 26% 5 9,900 Feb-19 54,600 5,300 9% Information 15,900 Feb-07 12,000 Nov-11 3,900 25% 1 6,200 May-18 15,100 1,100 7% Construction 1 46,400 Jun-06 50,100 Mar-12 9 6,300 66% 103,000 Mar-20 95,500 7,500 7% Government Non-cyclical 167,100 Mar-20 158,100 9,000 5% Mining and logging Non-cyclical 1 5,000 Mar-19 14,100 900 6% Education and health services Non-cyclical 146,400 Feb-20 128,700 17,700 12% Total 1,297,300 Mar-07 1 ,112,600 Sep-10 184,700 14.2% 1,429,600 Jan-20 1,159,800 284,600 19.9% Figure 6 NevadaWorkforce.com Department of Employment, @NVLaborMarket Training & Rehabilitation Economic Summary Economy in Brief April 2020 Nevada Employment Recovery Differences in How the CES National and State 1,500,000 and Area Estimates are Developed Current: 1,440,100 1,450,000 Decmber 2019 The methodology used to develop National 1,400,000 Peak: 1,297,300 CES estimates and State and Area estimates 1,350,000 differs primarily in two areas.
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