NEVADA UNEMPLOYMENT: SCARY CHART

06/23/08 10:37AM EDT
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.
© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.