The U.S. economy expanded moderately for the period. Real gross domestic product (GDP) increased at an annualized rate of 3.8 percent in the second quarter of 2025, driven by consumer spending and a decrease in imports. August employment rose by only 22,000 jobs, remaining essentially unchanged from the previous month, and up just 0.9 percent from a year earlier. The unemployment rate edged up to 4.3 percent from 4.2 percent in July. Inflation continued to trend upward in August, with the Consumer Price Index (CPI) rising 0.4 percent month-over-month and 2.9 percent year-over-year, while core CPI rose 0.3 percent and 3.1 percent, respectively. Retail sales in August experienced a stronger-than-expected gain, up 0.6 percent from July and 5.0 percent from a year ago. Strong retail sales may face headwinds from a slowing labor market. According to ADP, the private sector lost 32,000 jobs in September, while the official nonfarm payroll data for the month is unavailable due to the federal data release delay caused by the government shutdown. At its September meeting, the Federal Reserve cut interest rates for the first time in 2025, following three cuts in 2024, in response to slowing job growth.
Nevada’s economy softened in August. Seasonally adjusted employment lost 3,800 jobs in August. The unemployment rate edged down to 5.3 percent from 5.4 percent a month earlier. Gaming revenue in August increased 5.5 percent year-over-year, while air passengers declined 5.0 percent over the same period. Taxable sales in July experienced a robust gain of 4.3 percent, largely boosted by Storey County’s substantial year-over-year increase, where the Tahoe-Reno Industrial Center is located.
Clark County’s economy weakened as tourism continued to struggle with softening demand. August employment declined by 4,300 jobs from last month and was down 0.4 percent from a year ago. The unemployment rate held at 5.6 percent. Visitor volume in August continued to decline year-over-year for eight consecutive months, remaining 6.3 percent below last year’s level. Gaming revenue, however, rose 5.3 percent year-over-year. July taxable sales were up 0.9 percent year-over-year.
Washoe County posted mixed conditions. August employment fell by 400 jobs from last month and up 0.3 percent from a year earlier. The unemployment rate declined to 4.4 percent. July taxable sales increased substantially by 24.4 percent year-over-year, driven by Storey County’s strong performance. Gaming revenue in August increased by 5.3 percent year-over-year, and air passengers rose by 2.1 percent during the same period.
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.
