We were just talking about Nevada, and now we have some data to emphasise the fact that the depression continues in the former boom state.According to KLAS-TV, the statewide unemployment rate just jumped from 14.1% to 14.2%. Las Vegas unemployment is at 14.5%
Thus, we revisit Matthew Yglessias of the centre For American Progress, who wrote:
I think a neglected part of the labour market adjustment story is the geographical rigidities imposed by aspects of human nature and the housing market. There are enormous disparities in the unemployment rate from metro area to metro area that underscore the fact that our labour market is not perfectly integrated. Ask yourself why everyone doesn’t just leave greater Las Vegas, where unemployment is 14.1 per cent, and move to the DC area where it’s only 6 per cent. There are plenty of reasons, some we could (and should) try to remediate and some we probably can’t. But they make it difficult for modest growth to translate into maximum employment gains quickly.
To get an economic recovery in Nevada, we apparently need to two steps. First, housing prices need to appreciate to the point where people can move again. Then we need to get all these folks trained so they can have cush DC think tank jobs. Problem solved.
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