The U.S. economy closed 2025 with solid output growth but mixed signals heading into early 2026. Real Gross Domestic Product (GDP) increased at a strong annualized rate of 4.4 percent in the third quarter. The labor market added 130,000 jobs in January, a stronger-than-expected increase and the largest gain since December 2024. The unemployment rate declined to 4.3 percent from 4.4 percent in December, but remained above the 4.0 percent recorded one year earlier. Inflation continued to moderate compared to prior peaks, as the Consumer Price Index rose 2.7 percent year-over-year and Core CPI increased 2.6 percent. Retail sales were up 2.4 percent from last year. Housing starts declined 7.8 percent year-over-year, while auto and truck sales fell 3.5 percent, reflecting softness in interest-sensitive sectors.
Nevada’s economy displayed mixed signals. Seasonally adjusted employment in December remained unchanged from the prior month and was down 0.6 percent from a year ago. The unemployment rate stood at 5.2 percent, improving from 5.8 percent one year earlier. Taxable sales increased by 6.1 percent year-over-year. December gaming revenue declined by 1.5 percent from last year, resulting in 1.2 percent growth in 2025 compared with 2024, despite the weak performance in the tourism sector. December air passengers also declined by 9.8 percent year-over-year.
Clark County experienced similar trends. Employment reached 1,148.4 thousand in December, increasing 0.2 percent from the prior month but decreasing 0.8 percent from a year ago. The unemployment rate remained at 5.6 percent, down from 6.0 percent one year earlier. Taxable sales in November remained flat year-over-year despite a strong statewide increase. December gaming revenue declined 2.2 percent from last year. Visitor volume and air passengers decreased by 8.8 and 10.3 percent, respectively, over the same period. As a result, visitor volume and air passengers posted losses in 2025, down by 7.0 and 5.9 percent, respectively, compared with 2024, while gross gaming revenue increased slightly by 0.9 percent.
Washoe County posted somewhat favorable economic signals. Employment was down 0.2 percent from the prior month and 0.3 percent below last year’s level. The unemployment rate remained at 4.5 percent, down from 4.9 percent one year earlier. Taxable sales in November increased by 28.7 percent year-over-year. December gaming revenue and visitor volume rose 1.5 and 1.8 percent, respectively, year-over-year.
UNLV Center for Business and Economic Research
The views expressed are those of the authors and do not necessarily represent those of the University of Nevada, Las Vegas or the Nevada System of Higher Education.
