Someone forgot to tell Nevada employers that Democrats want voters to believe the economy is tanking.
Last month, Southern Nevada employment increased by 7,000 jobs. That was a 0.6 percent increase compared to July. Compared to August 2025, it was an increase of 14,200 jobs. As a result of these job gains and a drop in labor force participation, Nevada’s unemployment rate fell to 4.8 percent. That’s the first time Nevada’s unemployment rate has been below 5 percent since COVID.
It is almost always possible to spin statistics, and that’s the case here. It’s true that Nevada’s unemployment rate remains high compared to other states. According to the Bureau of Labor Statistics, only six states and Washington, D.C., have higher unemployment rates than Nevada. It is notable that two of those states are California, 5.1 percent, and Arizona, 4.9 percent.
But paradoxically, Nevada’s unemployment rate remains elevated because its economy has been expanding. Here’s what’s happening. A major factor in the unemployment rate is the number of people in the labor force. That’s the number of people who are actively looking for work, not the total population.
In December 2022, Nevada’s labor force was 1.558 million and 1.478 million people were employed. The unemployment rate was 5.2 percent. That’s according to seasonally adjusted data from DETR.
Now, DETR finds that Nevada has 1.595 million people employed. That’s an employment increase of more than 115,000 since Gov. Joe Lombardo took office. That wouldn’t be possible if the labor force had remained at 1.558 million. But the labor force has jumped to 1.676 million.
People are moving to Nevada because they believe they can find work here. Others have reentered the workforce. Even though this has inflated Nevada’s unemployment rate, it’s strong evidence of a growing economy. Ironically, the drop in labor force participation that reduced Nevada’s unemployment rate is worth watching.
Not every state has a growing labor force. In January, California’s civilian labor force was 19.9 million. In August, it was under 19.5 million, according to the Federal Reserve Bank of St. Louis. That contributed to California’s falling unemployment rate, but it’s not a positive sign.
A job-adding economy isn’t inevitable. Lombardo has reduced regulations, generally opposed tax hikes and protected Nevada’s right-to-work law. Voters should expect Attorney General and Democratic gubernatorial candidate Aaron Ford to take a more Newsom-like approach. Mr. Ford has voted for major tax hikes and vowed to repeal right-to-work.
Voters take note: Those policies wouldn’t be conducive to Nevada employers continuing to add jobs despite national headwinds.
