Real gross domestic product (GDP) increased at an annual rate of 2.4 percent in the fourth quarter of 2024, which was mostly attributed to continued increases in consumer and government spending. Seasonally adjusted U.S. nonfarm employment increased by 228,000 jobs in March, driven largely by gains in health care and social assistance, leisure and hospitality, and transportation and warehousing. These gains were partly offset by a loss of 4,000 in federal government jobs. The unemployment rate edged up to 4.2 percent, and the number of unemployed people reached 7.1 million.
Inflationary pressures eased, as the Consumer Price Index (CPI) declined by 0.1 percent month-over-month, its first monthly drop in nearly five years, and rose by 2.4 percent year-over-year in March. Retail sales saw a monthly increase of 0.2 percent and maintained year-over-year growth of 3.1 percent. Consumer confidence plunged amid economic and policy uncertainty, fueled by concerns over potential hardships stemming from ongoing economic policy developments. Meanwhile, the Fed kept the interest rates unchanged at 4.25 to 4.5 percent during its March meeting amid this uncertainty.
Nevada exhibited negative economic signals. Seasonally adjusted statewide employment fell by 0.1 percent in February and only rose by 0.4 percent from the prior year. The unemployment rate persisted as the highest in the nation, remaining unchanged at 5.8 percent. Gaming revenue in February posted $1.22 billion, experiencing a 9.3 percent year-over-year decrease. The absence of the Super Bowl contributed to annual declines in February gaming indicators. Air travel also fell by 7.0 percent year-over-year.
Clark County also reflected negative trends. February seasonally adjusted employment declined by 0.3 and 0.2 percent, respectively, month-over-month and year-over-year. Gaming revenue dropped to $1.06 billion, down 9.7 percent year-over-year. Visitor volume declined by 11.4 percent from February 2024. Residential permits fell to 989 units, a decline of 23.5 percent from the previous month and 27.3 percent from the prior year.
Washoe County experienced mixed economic activity. Seasonally adjusted employment rose to 282,700, reflecting a 0.2 percent monthly gain and a 1.5 percent year-over-year increase. The unemployment rate held steady at 4.7 percent. Gaming revenue reached $78.5 million, representing a 5.2 percent decline from February 2024. Visitor volume was 2.8 percent lower than a year earlier, while air passenger counts rose 0.5 percent year-over-year to 356,000. Residential permits totaled 328 units, down 27.4 percent from January and 4.1 percent from the previous 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.
