Nevada is leading the charge across the nation for payroll growth as the United States economy begins to recover from the COVID-19 pandemic. The biggest resurgence nationwide, the Silver State has posted a year-over-year growth of just under 30% according to an analysis by insurance tech company Huckleberry.
Growth in Nevada was double the rate of second-place Maryland (15%) and more than three times the growth of third-place North Carolina (8%).
Payroll growth is defined as the increases in average wage and salaries, and a factor typically considered to be a good indicator for recovery and business confidence. Nevada also jumped up its insurance policy growth by a whopping 165%.
“Nevada had the biggest bounce we’re seeing in terms of year-over-year applications for insurance policies,” Nick Dehn, a spokesman for Huckleberry, told the Reno Gazette Journal.
“Those are major numbers. Nevada is really an outlier here.”
Here in our home state, the growth could be attributed to Nevada’s top three recovering industries as they differed from the nation as a whole. Electrical contractors topped the list for payroll growth, followed closely by retail stores plus plumbing and HVAC contractors across the nation. However, Nevada’s top three small business sectors are administrative services, janitorial services, and physician’s offices.
“Payroll growth and increases in policy demand are excellent harbingers of what’s to come,” Dehn said. “When we see increases in a certain sector or industry, that indicates that there is some degree of faith in starting a new business in that sector.”
These numbers are excellent news for Nevada! Largely in part to Las Vegas’ service industry, the state as a whole was hit especially hard by the economic deficits of the pandemic. In April 2020, Nevada had a 28.2% unemployment rate amid the mandatory shutdowns of business – this marked the highest ever recorded for any state in history. Now, we are sitting pretty at 7.8% as a whole with Las Vegas seeing a 9.6% rate and Reno at 4.9%.
Northern Nevada especially has a highly diversified economy, with an emphasis on tech and manufacturing.