Perspective Update | October 2021

Education and economic development go hand-in-hand. Our team at LVGEA is committed to providing economic and educational development across Southern Nevada. As more companies are choosing to do business in our region, we are working alongside partners to continue developing talent through education and workforce training initiatives that align with the needs of employers today and tomorrow. In this education edition of the Perspective Update, you’ll find insightful commentary from LVGEA 50 Board member and President of Nevada State College, Dr. DeRionne Pollard, along with community survey results, updated market information, and an economic update from Applied Analysis.

Unsurprisingly, workforce availability remains top of mind for businesses looking to expand or locate in southern Nevada. More important than any tax or regulatory barrier, companies want to know the communities they are investing in have the right human capital. If we are to be successful in growing and diversifying our region’s economy, our colleges and universities must work in alignment to create a more diverse, prosperous, and well-educated workforce.

We know that people who obtain a college degree tend to earn more than people who have not attended college. This in turn leads to increased economic activity and prosperity where those people live and work. For every new Nevada State College graduate, there is a net increase in wages, economic activity, and overall prosperity. How large is that impact? Focusing on the 619 students earning degrees in 2021 and remaining in Nevada, incremental in-state direct wages amount to $10.9 million in income above what they would have earned with only a high school education. Nevada State College graduates that have remained in the state of Nevada following graduation (approximately eight out of 10) earn an aggregate of approximately $31.3 million annually, supporting approximately $71.4 million in direct local economic activity.

A well-educated workforce is key to the prosperity of our economy. Since graduating its first class in 2004, Nevada State College has conferred over 6,100 bachelor’s and graduate degrees. These students are often the first members of their families to attend college. The institution also serves many part-time students that must balance school with a job and childcare. Our students come from historically underserved backgrounds and have had to work their way through college. Due to the demographics of our student population, the college contributes greatly to the upward social mobility of our community by creating pathways into higher education for those who otherwise might not have been able to attend. In addition, Nevada State College focuses on building diverse workers in core industries of the economy, teaching, and nursing, which are a prerequisite to further economic development.

As Nevada State College begins offering certificate programs, it will further target adult learners seeking to acquire new skills and obtain better career paths for themselves and their families. The college aims to continue expanding its circular offerings while staying true to its mission of educating diverse learners in high-demand areas. Nevada State College was created for this moment – born of and for Nevada – and we stand ready to serve.

Dr. DeRionne Pollard is the president of Nevada State College.

The summer of 2021 exhibited many signs of growth for Southern Nevada’s economy. Most major indicators reported notable upward trends in recent months as the economy continues to recover from the significant impacts brought on by the pandemic.

The Southern Nevada workforce experienced positive growth through the summer months. Total employment climbed to an annual peak of 965,300 in August 2021. While this total represented a 9.7 percent improvement compared to August 2020, the region remained 71,000 jobs short of August 2019 levels. Moreover, employment grew faster in the earlier part of the year than it did in the summer. Between January and April, jobs returned at rate of 3.5 percent compared to 1.9 percent between May and August. The regional unemployment rate improved to 8.2 percent in August, the lowest level since the pandemic began. However, Las Vegas’ unemployment rate remained one of the highest in the nation among large metropolitan areas.

Job growth trends through the summer were broad across industries. The state’s core sector, leisure and hospitality, added 11,200 jobs between May and August, a 5.2 percent growth rate. Professional and business services added 8,300 jobs over the summer at a 6.0 percent growth rate, and the trade, transportation, and utilities sector added 3,700 jobs during that time, a 1.9 percent growth rate. While some sectors experienced slight declines, 18,100 jobs were added overall in Las Vegas from May to August, and since the employment low point in May 2020, the region has added 190,400 jobs out of the 274,800 jobs lost in early 2020.

Tourism in Las Vegas hit a hot streak through the early summer with the return of shows and concerts, the hosting of major sporting events and the grand opening of Resorts World Las Vegas before slipping slightly in August. Visitor volume climbed to an annual peak of 3.3 million visitors in July, just 10.4 percent below the July 2019 total, before dipping 9.2 percent in August to 3.0 million visitors, which was 16.2 percent lower than in August 2019. The recovery in visitation remained hindered by the slow return of convention activity and international travel restrictions.

The Southern Nevada gaming industry experienced its best stretch ever in terms of gross gaming revenue with three consecutive months topping $1 billion. The month of July 2021 marked an all-time high for gross gaming revenue at $1.16 billion. August saw a slight tapering off of gaming revenue at $993.4 million, which was likely related to the modest decline in visitors and visitors seeking out other entertainment offerings. Gross gaming revenue from the Las Vegas Strip was $625.7 million in August 2021, a 20 percent increase from August 2019. Meanwhile, gross gaming revenue in Las Vegas locals market area was $250.0 million, 41.2 percent higher than August 2019.

Hot summer temperatures did little to cool Southern Nevada’s housing market. The median sales price for existing single family homes rose from $385,000 in May 2021 to $405,000 in August 2021, a 5.2 percent gain. Since August 2020, the median single family home price has increased 20.9 percent, directionally consistent with national trends that have witnessed prices rise due to tight housing supplies and record-low interest rates that are increasing homebuying power.

Overall, the summer of 2021 provided reason for optimism for the Southern Nevada economy. The housing market continued to boom, employment steadily rose, and gaming revenue hit record highs. The path of the overall recovery will continue to hinge on the core tourism industry, which has the potential ebb and flow in response to broader economic and social factors. However, there is no question that 2021 will round out year as a marked improved from the prior one.