The Nevada Development Authority and Las Vegas Visitors and Convention Authority have partnered in an attempt to attract companies to relocate to Las Vegas and diversity Nevada’s economy. Read the article in the Las Vegas Sun.   This is a fabulous idea.  Actually one that we floated around to the NDA over a decade ago during the Dot Com boom when diversification efforts were in full force.  Why not stick a “Welcome to Fabulous Las Vegas….Why not stay here” sign in front of 2 million decision makers each year?  This makes absolute sense.

Back in the late 1990s when we were building TBAN (Technology Business Alliance of Nevada) and promoting the weekly Tech Tuesdays event, we discovered a major problem in diversifying the Las Vegas economy into technology.  The problem is the same problem that exists for nearly every professional industry today….”which comes first, the company or the professional worker? ”  We had started a conversation with Manny Cortez, past CEO of the LVCVA about a permanent kiosk that would have computer screens on each side.  For most conventions, one side would be dedicated to recruiting companies.  For other industries, such as health care, we would change the kiosk screens to focus 100% on attracting the much needed talent.  And if we were trying to attract an entire industry, such as Bio Tech, all screens would focus on company recruitment.

This concept is sound. Many business travelers are not aware of the great climate we have to offer here in Nevada.  Now they will.  To accelerate diversification, I encourage our economic developers to focus on Eds & Meds.  If we focus on these two industries, others will follow.  This model worked for Pittsburgh, PA.  And it will work for Las Vegas.   Again – many congrats, and thanks, go to Somer Hollingsworth and Rossi Ralenkotter.

For those industries (or industry…..health care) that have jobs that require out of market recruiting…..Las Vegas is an affordable market to buy again.  According to Trulia, Las Vegas ranks No. 10 on its list of cities where it is cheaper to buy rather than rent.  Las Vegas ranked at a 10.92 price-to-rent ratio.  If you are not certain what this metric means, here is a definition:

Price-to-Rent Ratio of 1-15: It is much less expensive to own than to rent a home in this city Price-to-Rent Ratio of 16-20: It is more expensive to own a home in this city are The total costs of ownership of a home in this city are greater than the costs of renting, but it might still make financial sense depending on the situation. Price-to-Rent Ratio of 21+: The total costs of owning a home in this city are much greater than the costs of renting.

If you are into economic charting, check this out.  It details the current marketplace for Las Vegas home listings.

This is good news.  We used to use Las Vegas’ housing affordability as an attraction tool back in the 1990’s and early 2000’s when it was affordable.  It became more challenging during the real estate boom when houses were selling within hours of being listed and the banks were lending to anyone who asked.

See….maybe there is a silver lining in this whole situation.

In the past Recruiting Nevada used Uhaul truck reports to determine the best migratory (feeder) cities for Las Vegas.  Since, we have developed our own proprietary software to determine the hottest markets to draw from and even have the ability to segment by profession.  We would look at the origination point for all Vegas-bound Uhaul truck rentals and establish a hit-list of the cities people were leaving to find jobs in Las Vegas.

Last week there was an article on MSN Money that discusses the rental truck rate variation based on where the jobs are.  In this article they compared Las Vegas to San Antonio…..respectively a city that is getting its butt kicked (Las Vegas – 13.9% Unemployment)  in the recession and one that is riding through the recession without many issues (San Antonio – 7% unemployment). 

This was their finding:

• From Las Vegas to San Antonio – truck rental fee – $1,880
• From San Antonio to Las Vegas – $437

Sad to say, but Las Vegas is no longer the relocation destination it once was.  This all has to do with jobs.  When we have them…..and we have for 21 consecutive years as the fastest growing city ….everyone wants to be here.  When we don’t, Las Vegas is not as appealing.

I believe the Hoover Dam Bypass will become to Las Vegas what the Golden Gate bridge has been to San Francisco.

Think about it:

• It is the largest span in the Western US.
• It provides un obstructed views of the Hoover Dam, the “Eighth Wonder of the World.” 
• Millions will travel from all around the United States and World to visit this. 
• Most will vacation in Las Vegas when they travel. 

Now let’s look at what the bypass has done for the Las Vegas economy:

• 1200 construction jobs in Nevada
• 300 engineering jobs
• $240 million in development

It is projects such as this that will revive the economy in Southern Nevada.   Check out an entire interactive presentation on our sister website – LasVegasSun.com

One of the greatest assets in Southern Nevada is Nellis Air Force Base:

1. Nellis AFB provides us with great protection (security).
2. Nellis AFB provides us with a great workforce when airmen retire.
3. Nellis AFB families add to Southern Nevada’s workforce.
4. Nellis AFB adds economic diversification to Southern Nevada.
5. Nellis AFB brings in great technology and innovation like solar power

Equally as important, Nellis Air Force Base provides plenty of Las Vegas jobs. 

As other bases around the United States downsize due to the Air Force’s ‘realignment’ efforts, Southern Nevada benefits.  Most recently, Nellis AFB will add 329 military and civil personnel (62 civilian and 267 military).  This is great news and should be celebrated.

Magnet?  Sticky?  What????

Pew Research Center recently put out a report titled “Magnet or Sticky” outlining a state’s ability to attract(magnet) and retain(sticky) its’ population.  Nevada was ranked as High Magnet-Low Sticky…..meaning we do an excellent job at recruiting people to the state (a little plug for Recruiting Nevada), yet we do not do such a great job at keeping folks here.  (Maybe we need to launch a website called RetainingNevada.com:)) 

Here is the official definition:

All in this group rank among the top 25 states on the magnet scale, and the bottom half on the sticky scale. (In the listing of states below, the two numbers after each state show their ranks out of 50 states and the District of Columbia — first on the magnet scale, then on the sticky scale.)

Alaska (3,50), Arkansas (21,34), Colorado (7,33), Delaware (11,36), District of Columbia (5,51), Idaho (9,45), Kansas (19,42), Montana (15,46), Nevada (1,44), New Hampshire (6,39) New Mexico (16,38), Vermont (14,40) and Wyoming (8,49).

So, as you see – Nevada is the most “magnetic” state, yet we rank near the top (#44) in our ability to keep residents. We are magnetic because of the jobs in Nevada.  We lose stickiness because of our inadequate education and health care delivery systems. 

So…..we have some work to do folks.  We need to build more of a sense of ‘community.’  This will move higher up on our agenda in the upcoming months.  Please feel free to share any thoughts with us as we begin to research some ways to improve.

Las Vegas (NV) – The data presented in this press release were collected by Recruiting Nevada (“RN”) during the 4th quarter of 2008 from job seekers who visited the www.recruitingnevada.com website. Recruiting Nevada publishes Nevada’s largest network of employment Web sites, thus attracting the largest audience of local and relocating job seekers. Restrepo Consulting Group LLC (“RCG”) analyzed the trends that the data reflect.

The two firms work together to analyze and report on employment trends in Southern Nevada. The work that RN performs is critical to understanding the types of jobs being marketed, the job seekers that are interested in those jobs and our community, what job skills they might be bringing and where they are coming from. RCG’s role is to assess and interpret what the data means for the future economic sustainability of Southern Nevada.

A total of 2,729 responses were collected by RN during the period. The data contained herein represent self-reported information. Job seekers’ intentions might vary significantly from their actual behavior. The data being analyzed are based on responses to job openings that have been marketed by RN for its clients, not basic inquiries.

Top 10 States: Where Job Seekers Are From: 1,832 of 2,729 Respondents

Analysis

• There were 2,729 survey job seekers during the 4th quarter of 2008 vs 2,857 during Q3. 67% or 1,832 of Q4 respondents came from 10 states. Nevada (28.5%), California (11.2 %) and Texas (4.5 %) were the Top 3 states for survey job seekers during the quarter. In Q3, the Top 3 states were Nevada, California and Florida. Florida, which was #3 in Q3, dropped to the #5 spot in Q4. In Q3, Nevada respondents represented 26.3% of all respondents, whereas 13.7% of respondents came from California and 5.4% from Florida.
• Over 72% of all the respondents from the Top 10 states were from Southwestern states (Nevada, California, Texas and Arizona), compared to slightly over 70% last quarter. Three of these states, Nevada, California and Arizona, remain at the center of the housing market collapse. Of particular concern is Nevada, because the data is indicative of the weak job market. Nevada reached an unemployment rate of 9.1% in December 2008, almost a full percentage point above the national average of 7.2% in December 2008.

Top 5 Employment Categories of Interest to Job Seekers

Analysis

• The Top 5 employment categories most heavily marketed, and the ones that job seekers were most interested in included:
  1. Nursing – 32% vs. 41% in Q3
  2. Construction Management – 22% vs. 18% in Q3
  3. Mining Trade – 24% vs. 18% in Q3
  4. Construction Trades – 14% vs. 13% in Q3 and
  5. Instruction – 8% vs. 10% in Q3
• Again, the good news is that the largest segment of job seekers was looking for nursing jobs, a profession that is in very short supply in Nevada. The bad news is that 46% of the job seekers were from the Construction sector, a jump of 48% from Q3’s estimate. This a very clear indicator of the massive job losses experienced by this sector nationally. That construction workers are seeking jobs in Nevada shows how bad things are elsewhere, considering the state of our own real estate market!
• Please note that RN is able to define the audience of readers/users by its Search Engine Marketing (SEM). So, the data on employment categories skew towards nursing, because that is where the largest portion of RN’s marketing budget is invested. No dollars, however, were spent marketing construction-related jobs. These are “active” jobseekers who found the www.recruitingnevada.com website.

Job Seeker Education Levels

Analysis

• The data appear to indicate that there was a relatively good supply of well-educated job seekers looking for work in Nevada during Q4, 2008. Added together, job seekers with Bachelors, Master and PhD. degrees comprised 29.4% (vs. 35% in Q3) of the persons looking for new employment, in-state and out-of-state. What we don’t know is how many are currently employed, underemployed or unemployed.
• Almost 28 (vs. 23% in Q3) of respondents had a high school diploma. About 16% had an Associate’s degree and 9.4% had a trade school diploma

Job Seeker Experience

Analysis

• Senior level and senior management employees, again, represented the largest share of job seekers at 43.2%. This was the same portion as in Q3. Mid level employees and mid level management accounted for 18.4%, the second largest group. In Q3, mid level respondents accounted for 19.6% of job seekers.
• On a positive note, its good for Nevada that mid and senior level employees are interested in possibly relocating to the state. On the down side, the relatively large percentage of senior and mid level job seekers is the result of the continued shedding of jobs around the country, because of a recession that is becoming more severe with each passing month.

When Will Job Seekers Move?

Analysis

• When asked about their interest level, 54% (53% – Q3) of all the job seekers in Q4 said that they would move to Nevada if they could find a job here. Clearly, most respondents do not want to move to Nevada without a job already in hand, because of the severity of the economy in the state.
• Nearly 23% of job seekers indicated that they currently live in Nevada. The share in Q3 was 22%.

Job Seekers & Their Housing Needs

Analysis

• The majority of respondents in the Q4 survey, not currently living in Nevada (49%, vs. 45% in Q3), indicated that they would prefer to rent if they move to Nevada, at least initially. Additionally, 39% (Q3  – 43%) said that they would rent first and then buy a home once they move to Nevada. Only 12% claimed that they would like to buy a house upon relocating to the state. This was consistent with Q3’s numbers.
• The weak economy is clearly causing job seekers to be very conservative in making long-term and large-scale financial commitments like home purchases. This also continues to be function of the health of the housing markets in Nevada and in the job seekers’ state of origin.
• Out of those job seekers who expressed an interest in buying a house once they move to Nevada, 52% (51% in Q3) were senior level or senior management employees with over 4 years of experience.

Job Seekers Education Level & Willingness To Buy a Home In Nevada

Analysis

• The data show that, regardless of the education level, more than half of all job seekers plan to ultimately buy a home (51% – blue and yellow bars).
• Of the respondents who stated that they intended to buy a home in Nevada, over 29% (Q3 – 26%) had a bachelor’s degree. Of those who plan to rent, almost 31% (Q3 – 24%) had a high school diploma.

The U.S. Census Bureau recently released statistics that show Elko County has the highest median family income in Nevada.  This will shock many in Southern Nevada who thought that the gaming industry offered the most lucrative career opportunities in Nevada – when in fact, it is gaming.

The mining industry is what drives Elko’s economy and allows its population to earn the sizable income it does.  In this tough economy, we need to be thankful for mining jobs in Nevada. 

The Orbitz Insider Ski Index was recently released  and Lake Tahoe was ranked the most popular ski destination for 2008-2009.

This is definitely a recruitment tool to be used with any ski enthusiast considering relocation to Nevada.

As you probably know, Recruiting Nevada is involved in the Opportunity Boulevard Career Fair.  We host four events per year and have been working at differentiating ourselves from the other Job Fairs in Las Vegas. 

We already outperform all of the others in attracting high-level professionals to our events, but we want to continue reaching ‘rich’ demographics.  One of our partners, Las Vegas Publications, has consistently attended the career fair and handed out the official Las Vegas Relocation Guide. 

We are now able to advertise our events a year in advance due to the fact that we have calendared them that far in advance.  This will assist us in attracting more professionals to plan a trip to Las Vegas and meet and interview with employers all in one day. 

We have also begin working with other partners such as Vegas.com and LasVegas.com on discounted travel packages. 

The easier we can make this for the professional looking to relocate to Nevada, the more success we will have.