Wednesday, January 22, 2025
28.0°F

Report: Western states edging toward recovery

Cristina Silva | Hagadone News Network | UPDATED 13 years, 1 month AGO
by Cristina Silva
| December 18, 2011 8:00 PM

photo

<p>Retired state worker Donna West, 55, gathers with Wall Street protesters outside a Bank of America building in Las Vegas to protest record bank profits on Oct. 28.</p>

LAS VEGAS - The West is recovering faster than the nation as a whole, but employment across the region remained far below pre-recession levels and the housing market showed few signs of improvement, according to an economic report released Thursday.

The report prepared by Brookings Mountain West researchers at the University of Nevada, Las Vegas focused on economic growth in 10 metropolitan areas spread across Nevada, Arizona, New Mexico, Utah, Colorado and Idaho.

Overall, the region saw a modest 0.3 percent growth in employment in the quarter ending in September, compared to the national rate of 0.1 percent, the study found. Utah, Colorado and New Mexico - states that have built broad economic bases - struggled the least, researchers said. In Arizona and Nevada, the housing collapse continued to limit job growth.

"We don't have a robust, steady recovery yet," said Mark Muro, policy director for the Brookings Metropolitan Policy Program. "The real estate crack up continues to have a severe influence on the places that struggle with it."

In all, every metropolitan area lagged behind pre-recession employment levels, with Phoenix and Las Vegas experiencing the sharpest differences. Job levels languished 10.8 and 13.4 percent below their respective pre-recession peaks.

"The road to recovery remains long and uncertain," the report noted.

Still, there was enough employment growth in the past year to drive down the unemployment rate in every major metropolitan area singled out by the report. Utah and New Mexico had the lowest unemployment rates, while Las Vegas had the highest at 13.6 percent.

Leading the recovery were Utah's Ogden and Provo, Albuquerque in New Mexico, and Phoenix. Boise and Las Vegas showed modest signs, but Tucson, Ariz., and Colorado Springs were still struggling, according to the report. Ogden and Provo saw employment rise by 1.5 percent, and Idaho's Boise saw a 1 percent increase in jobs.

Employment grew by less than 1 percent in Phoenix, Colorado Springs, Salt Lake City and Tucson.

Among the areas that faced a difficult quarter, such as Denver and Albuquerque, job growth in Las Vegas stagnated - a sign of Nevada's highest-in-the-nation unemployment rate. In Albuquerque and Denver, job growth fell slightly.

Manufacturing gains drove the jobs numbers in Provo and Ogden, while government expansion helped Boise grow its work force. Conversely, government layoffs contributed to economic woes in Colorado Springs, Las Vegas, Albuquerque and Denver. Production levels remained depressed in Tucson, Boise, Phoenix and Las Vegas.

The housing market offered few signs of recovery. Prices across the region remained significantly below last year's totals.

Still, the report highlighted some positive milestones. Prices remained stagnant or improved in eight of the metropolitan areas for the first time since the recession began in 2007. In Las Vegas and Tucson, home values continued to fall, but at a much slower rate than in previous quarters.

In the latest sign of hardship for Sin City, prices there saw the biggest drop from last year, at 19 percent. In all, Las Vegas home prices have dropped by nearly 65 percent since 2006. The steep fall means home prices are unlikely to recover in Las Vegas any time soon, according to the report. Nevada tops the nation in foreclosures, with vacant homes dominating many neighborhoods.

"A lot of people bought five or six houses strictly as an investment," said Mike Young, president of the Nevada Association of Realtors. "People just walked away. The values are too upside-down."

Hard-hit Tucson, Boise and Phoenix also will not see improved home prices in the foreseeable future, the researchers concluded.

"They have high foreclosures, they had massive real estate and construction employment that crashed and that kind of crack up has proven to be toxic to places," Muro said.

Business leaders called the report's findings accurate. In Tucson, where some of the major employers include national banks, health centers and the University of Arizona, officials are trying to promote higher education and attract more technology companies to the region to expand its work force.

MORE IMPORTED STORIES

Manufacturing and housing gains give U.S. economy a lift
Coeur d'Alene Press | Updated 11 years, 10 months ago
Vegas water intake now visible at drought-stricken Lake Mead
Coeur d'Alene Press | Updated 2 years, 8 months ago
Jobless rate creeps upward
Coeur d'Alene Press | Updated 14 years, 2 months ago

ARTICLES BY CRISTINA SILVA

Shotguns for single women
March 30, 2013 9 p.m.

Shotguns for single women

Arizona gun proponents launch free gun program
Miss Rhode Island wins title
June 5, 2012 9:15 p.m.

Miss Rhode Island wins title

New Miss USA cites Hepburn as role model

LAS VEGAS - The nation's newest Miss USA winner is a Rhode Island cellist who describes herself as a nerd and aspires to be more like Hollywood icon Audrey Hepburn.

Burning Man regulars lament ticket 'fiasco'
February 26, 2012 8 p.m.

Burning Man regulars lament ticket 'fiasco'

Annual desert event installs lottery system