Las Vegas July Unemployment Rate Rises to 6.0%, Private Sector Continues to Shrink

By | Voice in Between

Source: Nevada Department of Employment, Training and Rehabilitation (DETR), Nevada Workforce Information (nevadaworkforce.com), July 2025 data

Unemployment Rate Up from June, Down from Last Year

According to the latest figures released by the Nevada Department of Employment, Training and Rehabilitation (DETR) and the state’s Workforce Information Office, the unemployment rate for the Las Vegas-Henderson-Paradise Metropolitan Statistical Area (MSA) reached 6.0% in July 2025. This is an increase of 0.2 percentage points from June’s 5.8%, but lower than July 2024’s 6.4%.

In the same month, the MSA recorded approximately 74,017 unemployed persons, an increase of 1,386 from June but a decrease of about 4,694 compared to last year. The total labor force stood at 1,238,723, down 6,390 from June but up 11,693 year over year.
(Source: nevadaworkforce.com)

Statewide Employment Conditions Stable

At the state level, Nevada’s seasonally adjusted unemployment rate held steady at 5.4%, unchanged from June and slightly below July 2024’s 5.6%. Total nonfarm employment reached 1,574,300, representing a year-over-year increase of 0.5%. In July, government employment rose by about 1,100 jobs, while the private sector shed approximately 1,200 jobs, highlighting structural imbalances in the labor market.
(Source: MyNews4)

In the Las Vegas MSA, nonfarm employment rose by 4,200 jobs (+0.4%) month-over-month and 2,100 jobs (+0.2%) year-over-year. The limited growth indicates the private sector recovery remains sluggish.

Still High Compared with National Average

Among U.S. metropolitan areas with populations over one million, Las Vegas MSA’s 6.0% unemployment rate remains among the highest. By comparison, the national average unemployment rate in July was about 4.2%, a gap of nearly two percentage points. The disparity underscores the vulnerability of an economy heavily reliant on tourism and services in the face of weak consumer demand and declining visitor numbers.

Employment Outlook: Diversification and Projects Are Key

Experts point out that several factors will shape the trajectory of Las Vegas’s labor market in the coming years:
1. Recovery of Tourism and Services: The decline in international visitors and high local prices continue to suppress demand. If air travel and visa policies improve, tourism may once again drive job growth.
2. Infrastructure and Major Projects: The Brightline West high-speed rail project is expected to create thousands of construction and operations jobs. The MLB ballpark, which broke ground in 2025 and is slated for completion in 2028, will generate long-term employment. Other projects, such as the Southern Nevada Supplemental Airport and I-15 corridor improvements, will also provide job opportunities.
3. Economic Diversification: Employment currently depends heavily on tourism and hospitality. Attracting investment in technology, logistics, and manufacturing could reduce the impact of cyclical downturns.
4. Workforce Transition and Skills Training: The loss of service-sector jobs is pushing many workers to transition into new industries. If training programs can support this shift, structural unemployment may ease; otherwise, high unemployment could persist.

Conclusion

In sum, the Las Vegas labor market remains in a fragile recovery: unemployment is lower than a year ago but still above the national average. Job gains have relied on government hiring, while the private sector continues to shrink. The key challenge ahead will be whether large-scale projects and economic diversification efforts can foster new job growth and help the region break out of the cycle of high unemployment and low growth.