Oddly, Nevada’s economic recovery has taken on a new form during the past few months. The unemployment rate, which had been declining consistently, ticked up; and, the housing market, which has lagged the broader recovery, is showing marked signs of improvement. A closer look at these statistics, however, reveals that little has changed. Nevada’s economic recovery remains tepid as the state struggles with both cyclical and structural challenges.

Nevada’s unemployment rate rose 0.4 percentage points to 12.0 percent in July. This was the first increase in unemployment since July 2011 and the largest month-over-month increase since August 2009. Notably, Nevada added 10,400 jobs during the past 12 months and has reported 19 consecutive months of year-over-year employment gains. Led by 5,100 jobs added in the leisure and hospitality industry and gains in the education and health services (+3,600); business and professional services (+4,000); and trade, transportation and utilities sectors (+3,300), the private service-based economy continues to expand. By contrast, the contracting government sector (-2,100) and the long-suffering construction sector (-4,100) continue to weigh heavily on the overall economy.

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