Las Vegas ranks second in metro unemployment at 5.2% amid tourism slump

Las Vegas recorded a 5.2% unemployment rate in December, ranking second-highest among major US metro areas. The result comes amid a sustained slump in tourism to America’s casino capital, where visitor volume fell 7.5% to 38.5 million in 2025.

The December jobless rate, based on non-seasonally adjusted data from the US Bureau of Labor Statistics, placed the Las Vegas area second among more than 50 metro areas with populations of at least 1 million. Fresno, California, posted the highest rate at 8.2%. Honolulu recorded the lowest rate in the group at 2.1%.

Seasonally adjusted figures from the Nevada Department of Employment, Training, and Rehabilitation show that Las Vegas-area employment increased by 2,000 jobs from November to December. On a year-over-year basis, total employment was down by 9,800 jobs compared with December 2024.

Metro-level unemployment rates are not seasonally adjusted, unlike the monthly job totals.

Despite the decline in annual visitation, several taxable sales categories posted year-over-year increases in November, according to the Nevada Department of Taxation.

Food services and drinking places in Clark County generated more than $1 billion in taxable sales, up 4.3%, or nearly $42 million, from November 2024.

Clothing, shoe, and jewelry stores reported $441.5 million in November sales, an increase of 6.3%, or $26 million, from a year earlier.

Retailers selling furniture, electronics, and appliances recorded $183 million in November sales, up nearly 10%, or $16.5 million, year over year. These categories include spending by residents and visitors in a market with a high concentration of restaurants, bars, and retail outlets serving tourism activity.

In its 2026 outlook, Las Vegas-based RCG Economics reviewed issues including tariffs, housing affordability, water resources, and the convention industry. The firm, led by founder John Restrepo, reported that the US economy faces a heightened risk of recession and that Nevada’s reliance on tourism and discretionary consumer spending makes it “particularly vulnerable to national economic slowdowns.”

It added: “Any recession would likely hit Nevada harder and faster than most states.”

Southern Nevada has long relied heavily on visitors. However, tourism numbers tumbled last year as fewer people took Vegas vacations.

Visitor totals declined last year, with about 38.5 million people traveling to Las Vegas, down 7.5%, or more than 3 million visitors, from 2024, according to the Las Vegas Convention and Visitors Authority.