Las Vegas’ First Boom - First Dip (part 2)

Posted on July 25, 2007
Filed Under Dips & Humps |

With 20,000 new gaming jobs being created, few economists took into consideration the amount of non-gaming jobs in Las Vegas that would be created as a bi-product. We all knew and understood that each hotel room typically equates to 2.5 jobs, but what about the job creation just to support 20,000 new employees and their families? Who would build their homes, teach their children, tend to them when they are sick, sell them groceries, etc.?

I am not certain there is a perfect formula for this type of job creation and how it can specifically be tied to ‘hotel rooms’ but many economists have been using a 4:1 ratio - four jobs for every one hotel room. With that being said, there were an additional 12,000 jobs being created in the area of construction, retail, healthcare, education, etc.

In 1993 Las Vegas was known only as a gaming town. All of the other industries in existence, only existed to serve gaming. No one really forecasted the impact gaming job creation would have on those industries serving ‘the industry.’ The ripple effect caused talent shortages in virtually every industry. Food servers in local restaurants were being recruited to work in one of the new casinos, or to back-fill one of the older casinos. Hourly employees at the mall were leaving to work in one of the Strip’s new found revenue producers - high end retail.

New, and seasoned, teachers of the Clark County School District found themselves being recruited to serve cocktails in one of the casinos to the tune of 2-4 times what they were currently earning. Recent college grads were throwing their degrees out the window at the opportunity to park cars (as a valet) for $70-100 grand a year.

Las Vegas job growth was going crazy.

A “dip” was being created.

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