Looking out the front door of his home in Reno, Nev., John Dobra can see three “For Sale” signs on neighboring properties. On his drive into work as professor of economics at the University of Nevada, he passes many more. The signs are indicators of a depressed housing market and the outward symbol of a state in economic crisis.

Nevada continues to lead the nation in bankruptcies, foreclosures and joblessness. Although Las Vegas, the state’s largest city, continues to draw tourists to its famed casinos, gaming has been hit hard by recessionary pressures. Those who are still coming to Sin City aren’t spending as much as in past years, and the growth that has driven Nevada’s prosperity for decades has ceased. The result is a state-wide record-high unemployment rate of more than 14 percent – and at least 15 percent in Las Vegas.

“We are not doing well,” Dobra said. “The recession has had a significant effect on the state’s economy. People are losing their houses, jobs and life savings.”

But drive along Interstate 80 toward Elko County and signs of the recession begin to disappear. Here, in this large but sparsely populated pocket of northeastern Nevada, a different story is unfolding. The unemployment rate in Elko County hovers at eight percent, well below both the state average and the national rate. Much of the area’s prosperity is linked to mining, which is the largest employer and main source of income in several rural Nevada counties. (more…)