By Nevada Business Magazine, July 1, 2025
Real gross domestic product (GDP) decreased at an annual rate of 0.2 percent in the first quarter of 2025, largely due to an increase in imports ahead of anticipated tariffs and a decrease in government spending. Seasonally adjusted U.S. nonfarm employment grew 1.1 percent compared to last year, adding a larger-than-expected 139,000 jobs in May. Growth was supported by gains across several sectors, including health care, leisure and hospitality, and social assistance, while federal government employment continued to decline. The unemployment rate remained steady at 4.2 percent.
Inflationary pressures remain moderate. The Consumer Price Index (CPI) rose 2.3 percent year-over-year in April, while the core CPI rose 2.8 percent. Retail sales increased 0.1 percent month-over-month and 5.2 percent year-over-year, reflecting strong consumer demand despite experiencing overall tighter personal budgets. The Federal Reserve left interest rates unchanged at 4.25 to 4.5 percent, pausing on interest rate changes until more information becomes available on the national economy.
Nevada showed generally weak economic signals. Seasonally adjusted statewide employment increased 0.3 percent in the month of April and was up 0.7 percent from the prior year, reaching 1.58 million jobs. The unemployment rate improved slightly to 5.6 percent, though it remains the highest in the nation. Gaming revenue for the state totaled $1.23 billion, down 0.5 percent year-over-year. Air passenger volume fell to 5.1 million, marking a 3.1 percent annual decline, while taxable sales dropped 2.0 percent compared to last February.
Clark County also exhibited negative economic signals. April employment rose 0.2 percent month-over-month to 1.15 million, essentially flat compared to a year earlier. Gaming revenue declined by 1.1 percent year-over-year to $1.07 billion. Visitor volume dropped 4.5 percent, and air travel decreased 3.4 percent compared to April 2024. Residential permits, however, increased significantly by 68.5 percent from the prior year despite ongoing economic policy uncertainty.
Washoe County posted more positive trends. Employment rose 0.3 percent in April and was up 1.7 percent year-over-year, totaling 283,900. Air passenger counts were up 1.8 percent year-over-year, while visitor volume also rose 4.2 percent from April 2024. Gaming revenue increased to $86.3 million, a 4.3 percent rise from last year. Residential permits fell sharply by 44.7 percent.
UNLV Center for Business and Economic Research
The views expressed are those of the authors and do not necessarily represent those of the University of Nevada, Las Vegas or the Nevada System of Higher Education.