Jan. 24, 2012
DIVERSIFYING NEVADA'S ECONOMY -
THE PROS AND CONS
Jeremy Aguero, a local analyst from Applied Analysis, spoke at the Four Seasons hotel before 200 members of the Nevada Development Authority.
In a state where 20 percent of the people
work in hotel-casinos, Nevadans should think
twice about overstating the need to overhaul
the state's tourism-heavy employment situation.
"We have to be very, very cautious about
changing some of these things." Frankly, we
don't want to look like the national (industry
employment concentration) averages.
To understand what Nevada could do better,
start with how it is diversified. Nevada led
the nation in diversification in 2000 to 2010.
Nine of every ten jobs in the decade coming
from outside hotel-casinos.
Las Vegas is full of diversification success
stories, from Allegiant Airlines to the
Ultimate Fighting Championship, to Zappos, to
solar-power maker Amonix.
And, as the State opened 45 new hotel-casinos
in the same period, 11,000 new businesses were
launched as well.
The Silver State created 88,100 net new jobs
in the decade, while it would have formed just
20,900 jobs if it would have reflected the
national average of job distribution.
"So, there's something we are doing right,"
Still, Nevada remains the third least
diversified region in America, after Wyoming
and Washington, D.C.
Aguero said the state's narrow focus on
leisure and hospitality - it has three times
the concentration of hospitality jobs as the