The unemployment rate is an often discussed figure; however the discussion normally leads to how many jobs were lost. What we often forget is the other component of the rate and that is the labor force. Aside from a few dips, the labor force has been growing. While the number of folks desiring employment is substantial, take a look at the exhibit below and look at the growth in the labor force. We don't really know all of the underlying circumstances that makes up the labor force growth since we cannot really measure net migration with any precision. We also don't know precisely if these folks entered the labor force do to reaching working age or if some were re-entrants. Nevertheless, the reason that many folks had come to Las Vegas was the long track record of job growth. There were good, fundamental reasons why people initially came to this job market. After weakness in the construction sector and turbulence in Leisure & Hospitality, many jobs were lost. The good news is, Nevada has, according to my research on taxation and economic growth, fewer rigidities in the system, making starting (or reformulating) new businesses easier. Long-term, I find that this feature makes me a long-run bull on this area.

None of this is earth shattering new knowledge but I think its worth pointing out again as I find that the context of the unemployment figures gets distorted.

 Source: Nevada Department of Employment, Training and Rehabilitation.