Further evidence that the US economy is in recession came with last week’s appalling non-farm jobs data – not only were 63,000 jobs lost in February, against a forecast that 25,000 might be added, but the US Labour Department added insult to injury by halving January’s number too.
But if you really want to see recession in action look to Las Vegas, the jewel of Nevada and the planet’s biggest gambling and tourist Mecca that played host to 39 million people last year spending $10.9bn in its garish casinos and hotels. The two biggest operators, MGM Mirage and Harrah’s Entertainment are slashing jobs whilst gaming revenue is down nearly 5% – the first fall since 2001 – in spite of a weak dollar, something that would normally at least keep the tourists coming. Even Chinese New Year, one of the biggest gambling events in the calendar couldn’t stop the rot. It is also at the heart of the US housing crash: Prices have fallen 15% in the last 13 months. This makes some sense: if you aren’t making money working in Vegas why on earth would you want to live there?
First published in The Evening Standard 11/3/08