ECONOMIC COMPETITIVENESS

Business Growth

The change in the total number of business establishments can provide a sense of the strength and vitality of a local economy. Robust and consistent business growth may also result in strong gains in overall employment and income.

Southern Nevada business growth outpacing U.S. rates

Business growth in Southern Nevada has increased more than 3 percent annually since 2012. From 2015 to 2016, the number of business establishments in the region increased 4.38 percent, nearly 2.5 times higher than the nation's business growth rate.

Construction Activity

Construction activity, which is tied to business growth, provides insights about the health of the economy. New construction investment and activity typically signals economic and population growth, while weak building activity may spell trouble for the economy.

Click "Change Filter" in the above chart to view the Clark County Construction Index data since 2000.

Construction activity increasing, still rebounding from recession

About the data

Business growth reflects changes in the number of establishments. An establishment is a single physical location at which business is conducted or services or industrial operations are performed. It is not necessarily identical with a company or enterprise, which may consist of one or more establishments. When two or more activities are carried on at a single location under a single ownership, all activities generally are grouped together as a single establishment. The entire establishment is classified on the basis of its major activity and all data are included in that classification.

Estimates for the number of establishments come from the Quarterly Census of Employment and Wages (QCEW), a quarterly dataset maintained by the Bureau of Labor Statistics (BLS). QCEW data are obtained primarily from state unemployment insurance programs. The QCEW captures approximately 97% of all wage and salary civilian employment in the county. The data exclude those not covered by unemployment insurance: self-employed workers, most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of certain small nonprofit organizations (BLS, Quarterly Census of Employment and Wages Frequently Asked Questions).

The
Clark County Construction Index is produced by Center for Business & Economic Research (CBER) in the Lee School of Business at the University of Nevada, Las Vegas (UNLV). The index is composed of three components: Clark County residential permits, Clark County commercial permits, and Clark County construction employment.

To learn more about the business growth and construction activity in Southern Nevada or for additional information on the data presented above, contact Southern Nevada Strong.

Last updated: October 2018