Las Vegas unemployment climbs to 5.8% as tourism sector struggles
North Las Vegas leads metro area with highest jobless rate
Las Vegas metro area unemployment edged higher in June, rising to 5.8% from 5.5% in May, according to new data from the Nevada Department of Employment, Training and Rehabilitation (DETR). The increase reflects ongoing challenges in the region’s tourism-dependent economy as visitor numbers continue to lag.
The latest figures show 72,698 people were unemployed in the Las Vegas area in June, an increase of 4,474 from the previous month. Despite the monthly rise, the number of jobless workers remains 691 fewer than June 2024, when unemployment stood at 6.0%.
City-by-city breakdown reveals disparities
North Las Vegas recorded the highest unemployment rate among Nevada cities at 6.2%, though this represents an improvement from 6.7% a year ago. Other metro area cities showed varying levels of joblessness:
- Boulder City: 6.1%
- Las Vegas: 6.0%
- Henderson: 5.7%
- Mesquite: 5.6%
The disparities highlight uneven economic recovery across the valley, with North Las Vegas continuing to face particular challenges despite modest year-over-year improvements.
Tourism downturn impacts employment
The unemployment uptick comes as Las Vegas grapples with a significant tourism decline. Visitor volume dropped 6.5% through May 2025, with nearly 1 million fewer travelers compared to the same period last year. The slump has directly impacted the region’s largest employment sector.
Tourism supports approximately 252,610 direct jobs in Southern Nevada, representing 22.6% of the workforce. With visitor spending down and hotel occupancy rates falling, many hospitality workers face reduced hours or layoffs. Gaming revenues on the Strip fell 4.8% in March and 3.9% in May compared to 2024.
“The numbers are concerning,” said economist Stephen Miller from UNLV’s Center for Business and Economic Research. “When visitors don’t come, the ripple effects throughout our economy are significant.”
Statewide comparison shows broader challenges
Nevada’s seasonally adjusted unemployment rate of 5.4% ties with Michigan for the worst in the nation, though several states have yet to report June figures. The national unemployment rate stands at 4.1%, highlighting Nevada’s ongoing struggles relative to the broader U.S. economy.
All three Nevada metro areas saw unemployment increases in June:
- Las Vegas: 5.5% to 5.8%
- Reno-Sparks: 4.3% to 4.6%
- Carson City: 4.3% to 4.4%
Labor force continues modest growth
Despite rising unemployment, the Las Vegas labor force expanded slightly to 1,245,482 people, adding 219 workers since May and growing by 28,782 compared to June 2024. This indicates continued population growth even as job opportunities lag.
The region has experienced mixed employment trends across sectors. While education and health services added 4,200 jobs year-over-year, driven by healthcare investments, the crucial leisure and hospitality sector has struggled. Government employment saw the sharpest June decline, losing 4,100 jobs primarily in local school districts and higher education.
Economic headwinds persist
Several factors contribute to the challenging employment landscape:
- International visitor declines, particularly from Canada and Mexico
- Rising costs deterring budget-conscious travelers
- Competition from other destinations
- Economic uncertainty dampening consumer spending
Initial unemployment insurance claims rose 14.5% in recent months, with 11,629 claims filed in June. The state paid out nearly $45 million in unemployment compensation for the month, an $8.3 million increase from May.
Looking ahead
While convention attendance has shown some bright spots, rising 10% in recent months, the overall tourism recovery remains fragile. The Las Vegas Convention and Visitors Authority has boosted its advertising budget by $37 million for fiscal year 2026, hoping to reverse declining visitor trends.
For job seekers, the current environment remains challenging, particularly in tourism-related fields. Those needing to file unemployment claims can do so at ui.nv.gov, though the system underwent a week-long modernization shutdown in early July.
As Las Vegas navigates this difficult period, the unemployment figures underscore the region’s continued dependence on tourism and the vulnerability that creates during economic downturns.
Category: Business
Subcategory: Economy & Jobs
Date: 07/23/2025
