Nevada’s seemingly endless stream of mixed economic news continued through October. Most notably, the state economy reported 5,100 new jobs from the same period one year ago and the unemployment rate fell to 11.5 percent in spite of a surge in initial unemployment insurance claims. Recent trends in employment notwithstanding, Nevada’s renewed commitment to economic development appears to be paying dividends. New business formations are rising, which is an important leading indicator of job creation and economic investment.

In the second quarter of 2012, 493 new firms were formed statewide, 490 of which were in the private sector. This represented the best quarter for new business formation since the third quarter of 2008, and all industries barring construction reported a net gain in the number of firms when compared to the same quarter one year ago.

The information sector was the fastest growing private sector industry, reporting a 6.1-percent year-over-year growth rate and a 2.6-percent increase when compared to the prior quarter. Concerning is the fact that this expansion is not mirrored in the wages paid to workers, which decreased from $188.2 million in the first quarter of 2012 to $178.3 million in the second quarter of 2012. This may be the result of seasonality and various transitional factors, but the trend warrants monitoring heading into the new year.

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