by: Aaron Arellano, 8 NewsNow, Posted: Jan 2, 2026
LAS VEGAS (KLAS) — After a whirlwind 2025 for the Las Vegas economy, stabilization is expected for some industries, at least for the first six months.
According to the Director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, Andrew Woods, a healthy stream of conventions, sporting events and entertainment could stabilize the hospitality industry and small businesses through the Spring of 2026.
“For leisure and hospitality workers, which account for 1-in-4 jobs here in Clark County, we’re expecting things to stabilize,” Woods said. “I think where we’re kind of cautiously watching things right now is the summer months. If we’re going to have another slump and what does that mean when it comes to the American consumer and their spending habits. As well as the American worker and how well they’re doing with affordability concerns.”
Woods says the healthcare industry saw growth during 2025, according to Woods. He said about 40% of all job growth in Southern Nevada came from healthcare alone.
“Where we’re kind of watching things are [those] depended on the business cycle. Construction has been down in 2025. Does that rebound a bit with some business investment? Transportation, warehouse-type jobs, wholesale traders that has also been soft,” Wood said.
He said on the flip side, northern Nevada areas like Reno saw growth in manufacturing, which could smooth out tariff concerns for the state.
“There are concerns we’re watching too, especially when it comes to debt and affordability. We’ve seen a little bit in the Vegas market where consumers push back on the pricing strategies local businesses have had,” Woods said.
Woods said there are stimulative factors like low-interest rates and benefits from the Big Beautiful Bill Act that will be in play during 2026, but it’s not known yet if they will help businesses and workers, or top-tier big corporations, Woods said.
Jennifer Hunter co-owns Atomic Style Lounge in the Arts District and says, although she’s optimistic about her business, she’s concerned for her fellow business owners.
“Visitation to Las Vegas in general has been on the decline in the past couple of years. So I’m pretty concerned about my neighbors,” she said. ““Luxuries like going out to dinner every Saturday are having to take a backseat to just cover the increasing price of groceries.”