Southern Nevada’s economy is expected to undergo recession in the coming couple of months due the after-effects of Hurricane Katrina on the oil industry. The tourism industry which has seen an upward swing in its growth due to the increase in volume of the visitors, airport passengers and gaming revenue will be the worst effected due the increase in oil prices. Even though the U.S index did not show any increase and remained flat, the Las Vegas index of Leading Economic Indicators showed a continuous upswing. But the US index will eventually have effect on the Las Vegas index there are speculations that the growth in Las Vegas will be much slower.

Las Vegas has showed an increase of 7.6% in employment growth mainly due to the influx of people from the neighborhood. There are nearly 7,000 new residents added every month. After the Hurricane Katrina the closure of Gulf coast casinos has led to many casino workers coming to Las Vegas in search of jobs, which in turn has caused the rentals to increase squeezing the already thin market.

This entry was posted on Sunday, October 2nd, 2005 at 2:49 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.