The Role of LMI in the Development of Sector Strategies: Nevada’s Experience

Presented to the Workforce Information in Regional Economic Development Conference

April 2008

Department of Employment, Training and Rehabilitation

Larry J. Mosley, Director

Research and Analysis Bureau

Bill Anderson, Chief Economist

Nevada's Population

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500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

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pop % growth

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99 00 01 02 03 04 05 06 07 08YTD

Nevada Job Growth(2008 YTD through February)

Nevada Unemployment Rate(seasonally adjusted)

0%

1%

2%

3%

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6%

7%

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J F M A M J J A S O N D

Nevada Initial Claims for Unemployment Insurance: 2008 vs. 2007

2007 2008

-15%

-10%

-5%

0%

5%

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15%

J F M A M J J A S O N D

Nevada Gaming Win Growth: 2008 vs. 2007

2007 2008

-6%

-4%

-2%

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2%

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6%

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Nevada Taxable Sales Growth: 2008 vs. 2007

2007 2008

-60%

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J F M A M J J A S O N D

Southern Nevada New Home Closings Growth: 2008 vs. 2007

2007 2008

-20%

-15%

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Southern Nevada New Home Median Price Growth: 2008 vs. 2007

2007 2008

-50%

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0%

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Southern Nevada Recorded Resales Growth: 2008 vs. 2007

2007 2008

Time Magazine

Article: “Snake Eyes in Las Vegas”There’s not enough “suckers” for casinos in

Las Vegas

1938

Los Angeles Times

Headline: “Boom Town Expired with a Sob and Groan”

1905

Nevada Job Growth vs. Megaresort Openings

-40,000

-20,000

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91 98 05

Luxor, TI, MGM

Monte Carlo,NY/NY

Bellagio, Mandalay Bay, Venetian, Paris, Alladin

The Wynn

Major New Properties

• Palazzo…January 2008 (4,600 jobs)

• Encore…December 2008 (5,100 jobs)

• Fontainebleau…Fall 2009 (5,800 jobs)

• City Center…November 2009 (12,700 jobs)

• Cosmopolitan…Late-2009 (4,500 jobs)

• Echelon Place…2010:IVQ (9,500 jobs)

• Plaza Hotel…2012 (6,300 jobs)

0%

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Nevada Job Growth: History and Forecast

Forecast Highlights

• 145,000 new jobs through 2010• Leisure and hospitality growth peaks at

8.5% (surpasses 400,000)• Construction job growth approaches 5% by

end of forecast period• Financial services job growth surpasses 3%

in 2010• 1,500 new mining jobs

Team Nevada…

• Vision—A prepared workforce with skills, education, and training to fulfill businesses’ demands

• Mission Statement—Develop a holistic workforce development system that improves job training and prepared participants to fill demand-driven occupations

Team Nevada…• Focus—Strategically develop and implement a

network of businesses, educational institutions, government, and community organizations that will work together to accommodate workforce demands

• Members—DETR, SWIB, local WIBs, Governor’s Office, University System, Legislators, Economic Development Commission, Dept. of Health and Human Services, gaming industry, manufacturing sector, etc.

LMI

IndustrySector

Strategies

Partners &Stakeholders

SWIB

Worker &JobseekerServices

SpecialPopulationStrategies

Community/Faith-BasedSrv. Prov.

Business &EmployerServices

Demand-DrivenWorker Pipeline

Targeted Demand-Driven Industry Sectors

• Gaming and Hospitality (340,000 jobs)

• Healthcare Services (85,000 jobs)

• Retail and Support Services (140,000 jobs)

• Manufacturing (50,000 jobs)

• Construction (135,000 jobs)

• Mining (12,000 jobs)

Team Nevada LMI Needs (General)

• Workforce Demographics…easy• Goods and Service Producing Industries…

easy• Available Labor Force…somewhat difficult

for Nevada• Current and Future Economic Impact

Data…requires impact modeling capabilities

Team Nevada LMI Products/Services…

• Regional/Sectoral Periodic Briefing Books• Sector and Occupational Profiles

– better incorporate occupational information into analyses

• Sector/Industry Research Projects• A More Timely and Useful Projections Cycle• Economic Impact Analyses using REMI (also

useful for profiles and research)• Survey Products (vacancies, identification of sector

issues, etc.)…requires funding

Team Nevada LMI Products/Services…

• Support for Business Advisory Groups

• Support for Roundtable-Type Meetings

• Public Relations

Contact Information

Nevada Dept. of Employment, Training and Rehabilitation

Research and Analysis Bureau(775) 684-0450

Bill Anderson, Chief Economist(775) 684-0387

http://www.nevadaworkforce.com