Las Vegas Sun: Nevada’s robust job gains tempered by high unemployment ranking

Nevada’s labor market continued to strengthen in February, with the state adding jobs at the fastest annual pace in the country, even as its unemployment rate remained among the highest nationally, according to a report released Thursday by the Nevada Department of Employment, Training and Rehabilitation.

The seasonally adjusted unemployment rate held steady at 5.3% compared to January, while total nonfarm employment reached 1,605,200, an increase of 1,500 jobs from the prior month and a gain of 34,500 jobs, or 2.2%, from February 2025.

“This month’s report shows a strengthening labor market,” said David Schmidt, DETR’s chief economist. “Compared to the report for January, the pace of job gains in the past year increased from 1.9% to 2.2%, building on what was already the fastest pace of job growth in the country. While the unemployment rate remained stable, the labor force participation rate rose to 63.7%, 1.7 percentage points higher than the national level.”

The leisure and hospitality sector led the month’s gains, adding 1,600 jobs statewide. Construction followed with 1,000 new positions. Those increases offset losses in professional and business services, which shed 600 jobs, and trade, transportation and utilities, which lost 400.

The Las Vegas metropolitan statistical area added 1,100 jobs, a 0.1% increase from January, and posted a year-over-year gain of 25,100 jobs, or 2.2%. The Reno-Sparks MSA grew by 1,000 jobs (0.3%) over the month and gained 6,300 jobs (2.2%) from the prior February. Carson City was the lone metro to decline, losing 200 jobs (-0.6%) since January, though it remains up 100 jobs (0.3%) year over year.

The Las Vegas MSA’s year-over-year sector gains were driven largely by education and health services, which added 7,600 jobs, and professional and business services, which grew by 7,400. Trade, transportation and utilities gained 3,500 jobs, while leisure and hospitality added 3,000. On the losing end, financial activities and other services each shed 1,300 jobs over the year. Despite those sectoral shifts, the Las Vegas MSA set an all-time seasonally adjusted employment high in February, reaching 1,172,900 jobs.

Nevada’s labor force expanded by 3,829 people in February, reaching 1,698,029. Within that change, 2,962 workers joined the employed ranks while 867 more people entered the labor force as unemployed. The total number of unemployed Nevadans was 90,149, up 1,288 from February 2025.

Nevada’s 5.3% rate remains elevated compared with the national seasonally adjusted rate of 4.4%. According to the most recent state-by-state Bureau of Labor Statistics rankings, which lag one month behind the headline figures, Nevada ranked third-highest in unemployment in the country as of January 2026, trailing only California and Delaware, each at 5.4%. New Jersey and Oregon followed Nevada at 5.2% apiece. Updated state rankings for February will be available in next month’s report.

Nevada’s unemployment rate had been the highest in the nation for roughly a year before California drew even in mid-2025 and eventually pulled ahead. Nevada’s February figure represents a 0.1 percentage point improvement from February 2025, when the rate stood at 5.4%.

Unemployment insurance claims showed improvement. Nevada workers filed 10,745 initial claims in February, a decrease of 2,181 claims, or 16.9%, from January’s 12,926. That figure was also slightly below the 10,748 claims filed in February 2025.

Average weekly benefits paid to claimants rose to $505.59, up 3.4% from $489.12 a year earlier. Total compensation paid out in February reached $44.7 million, a 12.1% decrease from January’s $50.9 million. The exhaustion rate — the share of claimants who use their full benefits — stood at 42.35%, a slight increase from 42.27% in February 2025.

Nevada’s year-over-year employment growth of 2.2% as of February significantly outpaces the national rate of 0.1% over the same period.

Employment and unemployment data for Nevada are available through DETR’s workforce dashboards at nevadaworkforce.com.