May unemployment numbers were released recently and they weren't promising. The seasonally adjusted unemployment rate jumped to 6.2% from 5.7% in April. This is the biggest monthly jump we've seen in at least 30 years and the highest rate since 1994. Clearly, growing unemployment and the lousy housing environment are not good for the Las Vegas locals gaming market. Considering the precipitous drop in Boyd Gaming's stock price, Wall Street expectations for the locals business are already dismal. The high unemployment rate is also indicative of Strip layoffs due to weakening business levels and more importantly for stock prices, management expectations of a further slowdown. We can all tout the historical resiliency of Las Vegas but I'll be watching layoffs as one metric to help gauge the true tone of executives' outlook.
