Nevada recorded the highest unemployment rate in the nation for January 2025, reaching 5.8%, according to the state’s Department of Employment, Training and Rehabilitation. This marks a 0.1% increase from December, when the state also held the highest unemployment rate in the country.
The last time Nevada’s unemployment rate was below 5% was in January 2020, when it stood at 3.8%. Despite an increase of 5,255 workers in the state’s labor force in January, Nevada experienced a net loss of 5,800 jobs, a 0.4% decline. The hardest-hit sectors included construction and leisure/hospitality, each shedding 1,300 jobs.
Some industries saw marginal gains. Manufacturing, financial activities, and professional and business services each added 100 jobs. Over the past year, total employment in Nevada has grown by 13,800 jobs, reflecting a 0.9% increase.
David Schmidt, chief economist for the Nevada employment department, stated that the January report incorporated updated data sets and revised employment models. He attributed the rising unemployment rate to both new labor market entrants and job losses. “Wage growth remains strong in the state, likely contributing to both the slower pace of employment growth and the steady rate of entrants to the labor market,” Schmidt said.
Las Vegas saw the largest job losses in January, with a decline of 7,500 positions. However, over the past year, the city added 8,100 jobs, a 0.7% increase. Reno lost 600 jobs last month but gained 3,100 jobs over the past year, marking a 1.1% increase. Carson City, the state capital, gained 200 jobs in January and added 600 jobs over the past year, a 1.9% increase.
Nationally, the District of Columbia and California followed Nevada with the highest unemployment rates at 5.5%. South Dakota and Vermont reported the lowest unemployment rates at 1.9% and 2.4%, respectively.
