The basic idea of job growth is that running a casino requires a labor force derived from the locals. As a result, the unemployment rate in the area falls. But it’s not about whether casinos will lower unemployment rates; it’s about who the unemployment rate is. Many casino jobs require accounting, cards, security, etc. If the casino Toto 토토사이트moves to a region with a relatively low-skilled workforce, the casino will probably attract a high-skilled workforce from outside the region. If this labor force stays outside the region and workers commute to the casino, the unemployment rate in the region will not change.
On the other hand, if some skilled workers move to nearby casinos, the unemployment rate in the region (unemployed divided by labor force) will decline to the extent of the increase in the labor force. This decline in unemployment is often seen as evidence that casinos have improved local employment. However, we need to realize that the unemployment rate of the unskilled and those originally employed by casinos Toto 토토사이트is almost the same. It is these new entrants who have reduced the unemployment rate.
The main lesson about casinos and their impact on local unemployment rates is that they are declining. The amount of money you bet on in American corporate casinos is not trivial. More than $370 billion was bet in 2000 alone. That’s roughly $1,300 per American. Nearly 93% of the annual stakes will be returned to the players as prize money, leaving the casino with $26 billion in adjusted annual revenue.
However, casino revenues vary greatly from state to state. Nevada is the largest market, and casinos earn about $9.5 billion in adjusted gross revenue annually. Atlantic City casinos earn more than $4 billion annually, while Missouri and Illinois Riverboat Casinos earned more than $1 billion and $1.8 billion in adjusted gross revenue in 2001, respectively.
Although the casino industry and local governments use economic development to promote casino gambling to citizens, it is still unclear how much economic development will be promoted by the introduction and growth of commercial casinos in certain regions. What are the perceived advantages of the problem?
Challenge 1: Casino proponents often point to the decline in local unemployment after the introduction of casinos as evidence that casinos improve local employment. Since the local unemployment rate dropped after the casino was introduced, it must have helped the casino reduce the local unemployment rate. Maybe. We need to simultaneously compare changes in rural unemployment rates with changes statewide. If the changes are almost the same, the employment growth in the casino area may be the result of natural business cycles (economic fluctuations in other sectors) and not the effects of casino adoption. Suppose the drop in the unemployment rate after the introduction of casinos is greater locally than in the whole state. In that case, the casinos could say they have lowered the local unemployment rate.
The key here is to compare changes in regional unemployment rates with changes in unemployment rates across the state. Other factors, such as demographic changes and local business conditions, must also be considered when comparing the unemployment rates in the area before and after the casino opened. Looking only at the time difference in regional unemployment without understanding demographics or the economic cycle across the state could give a false image of the employment effect of casinos.