Drop in unemployment rate expected to be temporary

SUBMITTED NEWS RELEASE

CARSON CITY — The Nevada Department of Employment, Training & Rehabilitation today released the unemployment figures for October 2009. Statewide, unemployment decreased from 13.3 percent to 13.0 percent during October. Unfortunately, Gov. Jim Gibbons believes this to be a temporary drop and not a sign that Nevada’s economy is turning around.

“I would like to tell the citizens of Nevada we have seen the worst of the economic crisis and are seeing the fruits of recovery,” Gibbons said. “The decline in unemployment has not been followed by an increase in the employment base. Clearly the federal stimulus dollars have been better at retaining existing jobs rather than creating new jobs.”

Preliminary October reports from the Department of Taxation do not indicate an increase in the modified business tax, a tax that is based on the number of employees in each location. If new jobs are created, the modified business tax revenue should also increase.

Unemployment rates are expected to rise during the month of November, and again in December when the completion of several Las Vegas Strip construction projects including City Center will result in a significant loss in construction jobs.

“My office continues to receive reports from businesses who regretfully must implement additional employee layoffs,” Gibbons said. “We are working diligently on all fronts to bring new businesses to Nevada and to develop a new renewable energy industry in Nevada to create green jobs. I will continue to fight for new jobs for Nevadans.”

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