Image by Jonathan Rados

More People Are Getting Unemployed In Vegas Because Of MGM Layoffs

Article by : Helen Jan 25, 2021

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The unemployment rate in Las Vegas is rapidly increasing, and the main reason for this negative change is that people the MGM Resorts casino operator has laid off.

It has been recently reported that MGM will fire about 140 managers. Brian Ahern, the MGM spokesperson, called it the “temporary reduction.” The spokesperson stated that this change is provoked by the recent projections under which the business volumes won’t get better, at least at the beginning of this year. “Business volumes are projected to remain low for the beginning of the year due to the pandemic, unfortunately requiring temporary reductions in staffing across our Las Vegas properties. We are focused on bringing employees back to work when business levels recover.” At the same time, MGM believes that the distribution of a vaccine will help the business recover, and most of its staff will be able to return to their workplaces.

The remarkable events of the past year have not gone unnoticed. As a result of Nevada casinos’ shutdown, thousands of workers were fired last spring. Although casinos were allowed to reopen their properties in August 2020, they were forced to work under the capacity restrictions. Eventually, it resulted in 18,000 workers being fired: this is one-fourth of 68,000 personnel employed before the lockdown start. Things are not getting better: the capacity has been recently limited one more time, meaning MGM is not a single operator forced to reduce its staff. Once The Strip and some other Nevada businesses closed their properties, the jobless rate in Las Vegas increased by 34%. Penn National Gaming’s M Resort has also laid off almost 160 workers at the beginning of January 2021.

The layoffs are the very unfortunate reality of not knowing how long this global public health threat will last or when we’ll be able to resume full operations.

He added that termination had been caused by the Coronavirus pandemic and low business volumes, respectively. Covid-19 pandemic undermined Nevada, so it can’t stabilize its commercial activity since last March. State’s casinos, restaurants, bars, and many other public places had to operate under a 25% capacity limit. Hotels faced difficulties as well because it was hard to attract visitors, and some of them even stopped operating on weekdays.

Since November 2020, the number of new positive cases has been growing; about 2,420 new cases were reported on 14 January 2021. The overall number of infections since the first case was recorded is more than 235 thousand. In light of the recent increase of new cases, Governor Steve Sisolak announced that the present mitigation measures will be extended for 30 days. According to these measures:

• Bars and restaurants must operate at 25% capacity where people have to keep their distance.
• Four people only can play at one table at the same time.
• Restaurants and bars should conduct temperature checks.
• Gaming operations must follow the Nevada Gaming Control Boar’s requirements.
• No more than 50 individuals can gather during public gatherings.
• Private gatherings are limited as well: 10 people from no more than two houses can gather at the same time.
• Day and night clubs, brothels, and adult entertainment properties are closed.

Far not all the Nevada people are happy with the measures mentioned above. Las Vegas Mayor Carolyn Goodman said that Sisolak acts as a dictator, and his action might lead to the Dark Ages.