Georgia Gaming Market Assessment - Pennsylvania Treasury

Employment
Employment is a significant, if not the single-most significant, factor in terms of gaming revenue
declines during the recession. High employment usually signals a healthy economy which
creates a more profitable market, capable of sustaining a gaming industry. As the global
economy has weakened, layoffs have occurred causing employment levels to decline, and with
that, gaming revenues have declined as well. This section summarizes both national and regional
employment trends with a focus on the actual number of people employed as a signal for a
potential economic recovery.
National Trends
In a white paper assessment of the impact that the Great Recession has had on the gaming
industry nationwide, the Innovation Group concluded that employment decline is the single
greatest factor impacting gaming revenues. Therefore it is critical to evaluate the employment
and income trends in the regional market to assess the prospects for gaming spending in the
market area.
Nationally, the Great Recession’s impact on employment began in January 2008. Employment
peaked in December 2007 at 137,951,000. Over the next two years the U.S. shed nearly 8.4
million jobs before bottoming out in December 2009 at 129,588,000, a decline of 6.1%. In 2010,
over 1.1 million jobs were added, an increase of 0.9%. In summary, employment stands at
130,712,000, 5.2% below its pre-recession level. The following chart shows trends for the
decade:
The Innovation Group Project #054-11 August 2011 Page 9