Las Vegas NowNevada Gets Low Marks From Economic Analysis Report

Despite its population boom and strong job market, Nevada has again received poor grades from a nonprofit, nonpartisan economic analysis group in two of three broad categories that deal with the economy and quality-of-life issues.

In a report released Thursday, Nevada got an F for "development capacity" from Washington, D.C.-based CFED, formerly known as the Corporation for Enterprise Development. The organization gave the state the same grade in its report released a year ago.

The latest CFED report also gave the state a D for "business vitality," the same grade it gave a year ago, and lowered the state's B for "performance," in categories such as employment growth, population in-migration and job quality, to a C.

"Although Nevada did not fare well on this report card, there are obviously a number of areas where the state is excelling," said Beadsie Woo, senior economist for CFED. "Nevada ranks top in the nation in long and short-term employment growth as well as net migration."

Woo added that the 19th annual CFED report isn't designed to criticize states but to provide a comprehensive assessment of every state's economic climate and to remind states that beyond recruiting businesses they must "focus investments on workers, education and business."

Trend indicators included in the report show that Nevada is ranked seventh among the states with only fractional changes in its low unemployment rate between 2000 and 2004. While its ranking for pay growth is good, in terms of changes in annual average pay it's ranked 31st.

In terms of new companies, the report says the state is ranked 27th, with a slight decline in companies applying for new employer ID numbers. It's ranked 34th among states for business closings, and 44th in home ownership.

Between 1998 and 2002, the report notes a slight decline in the percentage of high school completion rates, resulting in a ranking of 44th for Nevada.

Also noted was a 45 percent increase in energy costs between 1999 and 2004, leaving the state in 50th place. Its poverty rate puts it in 15th place.

Other rankings include: 40th for teen pregnancy, 34 for heart disease, 49 for uninsured low-income children, 29 for charitable giving, 47 for voting rates, 41 for crime rates, and 14 for per capita energy consumption.

CFED: Expanding Economic Opportunity

(Copyright 2006 by The Associated Press. All Rights Reserved.)