Metro Economic Outlook: Las Vegas

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1 Metro Economic Outlook: Las Vegas Corporate gatherings are big business in Las Vegas, where millions of professionals flock each year for meetings and conventions. Tourism and related travel activity represent the heart of the metro region s economy. The Las Vegas area s gross domestic product of $93 billion ranks it 38 th in the nation, just ahead of the Virginia Beach, Va. region and just behind the Bridgeport, Conn. metro area, according to the Bureau of Economic Analysis. More than 41 million visitors came to Las Vegas in 2014, according to the Las Vegas Convention and Visitors Authority (LVCVA). Of that group, more than 5.1 million were convention delegates. The city hosted more than 22,000 conventions and meetings in 2014, resulting in an economic impact of $7.4 billion. LAS VEGAS METRO: VITAL STATS Total working age population: 1,255,484 out of a total population of 2,069,681 Number of households: 731,322 Mean travel time to work: 24.1 minutes Employed persons with health insurance coverage: 658,889 Self-employed employed workers: 41,094 Percentage of local residents with bachelor s degrees: 15.0 Percentage of local residents with w graduate or professional degrees: 7.7 Source: Bureau of Labor Statistics (October 2015) Las Vegas is also the top destination in North America for trade shows, according to the LVCVA. The city hosts 53 of the largest 250 shows, ahead of the two closest competitors, Chicago (29) and Orlando (24). Among the groups that hold their annual shows in Las Vegas each year are the National Association of Broadcasters and the International CES, an annual consumer technologies event hosted by the Consumer Electronics Association. Las Vegas has nearly 11 million square feet of convention and meeting space, including the 2.2 million-square-foot Las Vegas Convention Center, which was home to SHRM s 2015 Annual Conference & Exposition. With such a large tourism and convention presence, it is perhaps no surprise that the leisure and hospitality sector represents the biggest segment of the Las Vegas metro s private sector work force, with about 280,000 workers that belong to that industry. Source: Census Bureau (2014) Last updated on 12/7/2015 Unemployment and most CPI data updated monthly. Other data updated once annually as it becomes available.

2 Some of the area s other large employment sectors are professional and business services, and trade, transportation and utilities. However, much of the labor force s future growth in the Las Vegas area is connected to the construction sector. According to State of Nevada projections for Las Vegas s home of Clark County, the top three fastestgrowing occupations Source: Bureau of Labor Statistics (January 2015) from will be cement masons/concrete according to Census Bureau data. finishers, roofers, and cost estimators. Strong population growth in the past three decades has also given the labor market a steady supply of workers in the Las Vegas area. Clark County had fewer than 500,000 residents in 1980, but that number jumped to 770,280 in 1990, to 1,425,723 people in 2000 and now stands at roughly 2 million people, The local housing market which boomed in the early 2000s and had a commensurate crash during the Great Recession of has shown some improvements as of late, according to the Greater Las Vegas Association of Realtors. The median price of homes sold locally in March 2015 was $205,000, up 5.1 percent from a year ago. The median price for local condominiums and townhomes was $115,000 in March, an increase of 13.9 percent from March Elsewhere, Las Vegas officials are in the midst of creating a new citywide strategic plan that would address economic diversification and improvements in public safety, transportation and education. Source: Census Bureau (2014) 2

3 Employee Benefits Data Employers offering consumer-driven health plans Employers in the Las Vegas metro area are much more likely than the national average to offer consumerdriven health plans, by a margin of 20 percent. Employers offering domestic partner benefits % 6 They are also more likely to offer domestic partner benefits, by a 12 percent margin above the national average. Source: SHRM Health Care Benefits Database (2014) Retirement Employee 401(k) participation rate % 61% The rate of employee 401(k) participation in the Las Vegas metro area s workforce is just below the national average, by a margin of 1 percent. Source: SHRM Retirement & Welfare Benefits Database (2014) 3

4 Income and Turnover Data Overall turnover rate 17% 43% The turnover rate in the Las Vegas metro area s work force is considerably higher than the average nationally, by a margin of 26 percent. Source: SHRM Human Capital Database (2014) Median household income $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $53,657 $51,214 Median household income in the Las Vegas metro area is slightly lower than the national level, by more than $2,000 annually. $0 Source: Census Bureau (2014) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Per capita income $28,889 $25,326 Per capita income in the Las Vegas metro region is also lower than the national median, by more than $3,000. Source: Census Bureau (2014) 4

5 Top Management Salaries Data Median salaries, top management *Top legal executive *Chief information officer *Top HR executive *Chief financial officer *Chief executive officer $282,700 $305,400 $285,000 $264,300 $278,500 $265,200 $355,900 $344,400 $596,000 $618,400 Median salaries for top management level employees in the Las Vegas metro area vary when compared with national levels. *Pacific Southwest States sub-region median data $0 $200,000 $400,000 $600,000 $800,000 Source: Towers Watson Data Services 2014 Survey Report on Top Management Compensation Project lead: Joseph Coombs, Senior Analyst, Workforce Trends, SHRM Project contributors: Alexander Alonso, Ph.D., SHRM-SCP, VP of Research; Jennifer Schramm, M. Phil., SHRM-SCP, Manager, Workforce Trends External contributors: Las Vegas Convention and Visitors Authority; City of Las Vegas Copy editing: Katya Scanlan, copy editor This report is published by the Society for Human Resource Management (SHRM). All content is for informational purposes only and is not to be construed as a guaranteed outcome. SHRM cannot accept responsibility for any errors or omissions or any liability resulting from the use or misuse of any such information Society for Human Resource Management. All rights reserved. Printed in the United States of America. These materials and the data contained within them are copyrighted by SHRM, another copyright holder (where noted), or are government-owned. SHRM hereby grants permission for users to copy and use these materials and the data contained within them only if proper attribution is given to SHRM (or the noted copyright holder) as the source of the material. For more information, please contact: SHRM Research Department SHRM Human Capital Database 1800 Duke Street, Alexandria, VA 22314, USA Phone: (703) Fax: (703) SHRM Compensation Data Center [email protected] Web: 5