Real gross domestic product (GDP) increased at an annualized rate of 3.3 percent in the second quarter of 2025, supported by consumer spending and a decline in imports following recent surges in anticipation of tariffs. U.S. nonfarm employment added only 22,000 jobs in August, remaining nearly flat since April. Employment only rose 0.9 percent from last year. The unemployment rate edged up to 4.3 percent from 4.2 percent in July. Inflation continued to trend upward, with the Consumer Price Index (CPI) rising 2.7 percent year-over-year and core CPI up 3.1 percent. Retail sales gained 0.5 percent month-over-month and 3.9 percent annually. At its July meeting, the Federal Reserve left rates unchanged. Markets now expect a possible rate cut in September, given the weak employment growth even with higher inflation.
Nevada’s economy reflected modest improvement in July. Seasonally adjusted employment in July added 1,100 jobs from last month and was 0.5 percent higher than last year. The unemployment rate remained unchanged at 5.4 percent, down from 5.6 percent a year ago. Gaming revenue rose to $1.359 billion, up 4.0 percent year-over-year. Taxable sales in May reached $7.597 billion, a 0.7 percent annual gain. Air passenger volume, however, experienced a 5.1 percent contraction from last year.
Clark County showed mixed performance. Seasonally adjusted employment added 4,200 jobs from June but rose by only 0.2 percent from last year. The unemployment rate eased to 5.6 percent, compared with 5.9 percent in July 2024. Visitor volume in July marked the seventh consecutive month of year-over-year decline, down 11.1 percent from last year. Air passengers also continued to fall, decreasing by 5.7 percent over the same period. Gaming revenue in July, however, climbed by 3.2 percent year-over-year. Taxable sales in May were $5.453 billion, a 1.8 percent annual decrease, while residential permits stood at 847 and were 32.0 percent lower than a year earlier.
Washoe County posted stronger signals. Employment was steady, up 1.1 percent from a year earlier, while the unemployment rate held at 4.5 percent, down from 5.0 percent last year. Gaming revenue in July increased strongly by 7.4 percent year-over-year, and air passengers rose by 0.9 percent during the same period. Visitor volume in July, however, decreased by 0.7 percent from last year. Taxable sales in May were $1.209 billion, up 3.7 percent year-over-year. Residential permits reached 313, though still 12.8 percent below last 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.
