The tourism decline facing Las Vegas could be a result of a nationwide lack of confidence in the job market.
A survey released by the Federal Reserve Bank of New York found that if workers were to lose their jobs, the perceived probability of finding a replacement position has fallen to 44.9% in August. For context, the survey conducted in July listed the perceived probability at 50.7%.
The August survey has the lowest recorded confidence since tracking began in 2013. Confidence fell across all ages, education and income groups. The people most affected by this have a high school education as their highest level of schooling.
A large portion of construction workers are in the group whose confidence in the job market has fallen the most.
According to the U.S. Bureau of Labor Statistics, a high school diploma is the highest level of education for:
- 53.1% of operating engineers and other construction equipment operators;
- 45.3% of miscellaneous construction and related workers;
- 40% of helpers, construction trades, all other;
- 39.5% of construction laborers and
- 39% of painters, construction and maintenance.
Local Data and Affect
Clark County has fewer residents with a higher education than the national average. The U.S. Census Bureau reported the national number of residents aged 25 and older with a bachelor’s degree at 36.2%. In Clark County, the Bureau reported only 28.7%.
Southern Nevada is heavily impacted by tourism and the number of visitors coming in. As people become increasingly disillusioned with the economy and job security, they are less likely to travel to Las Vegas.
Frustrations have also begun to stack up over resort fees, parking fees, food and drink costs and other expenses. From January to July, there were roughly 22.6M visitors this year. This is down 8% year-over-year, which reflects a drop of two million tourists.
