Las Vegas tourism has seen a notable decline, leading to significant challenges for casino workers. Many employees find themselves without regular shifts or consistent income, despite remaining technically employed by major resorts. This situation creates financial instability for those who depend on the city's visitor economy.
Key Takeaways
- Las Vegas tourism has decreased for seven consecutive months.
- Casino workers are experiencing fewer scheduled shifts, impacting their income.
- Employees are often kept 'on call,' leading to unpredictable work and pay.
- This practice helps companies avoid formal layoffs but leaves workers in financial limbo.
- Reduced hours can affect eligibility for health benefits under the Affordable Care Act.
Tourism Numbers Decline in Las Vegas
Visitor numbers to Las Vegas have been falling for several months. Data from the city's Convention and Visitors Authority shows a consistent downward trend. In July, visitation dropped by 12% compared to the previous year. This marked the seventh straight month of decline.
Last year, tourists spent a total of $55.1 billion in Las Vegas. The city welcomed 41.7 million visitors to the Strip. However, the recent slowdown directly impacts the local workforce, particularly those in the casino and hospitality sectors.
Visitor Statistics
- July Visitation: Down 12% year-over-year.
- Consecutive Declines: Seven months of reduced visitor numbers.
- Total 2024 Spending: $55.1 billion (previous year).
- Total 2024 Visitors: 41.7 million (previous year).
Impact on Casino Employees
For many casino workers, the tourism slowdown means fewer shifts and uncertain pay. Employees are often listed as 'on call' but receive no guarantee of work. This leaves them in a difficult position, struggling to cover daily expenses like rent and groceries.
Sonya Owens, an employee at Caesars, shared her experience with KTNV Las Vegas. She reported not receiving a single shift in two months, despite being on the company's 'on call' schedule. This is not her first time facing such long periods without work.
"Bills backed up, and you know I just got to find something permanent," Owens stated, highlighting the financial strain.
This employment model allows casinos to maintain a flexible workforce. They can call in staff when demand is high, such as during major events. However, they can also reduce hours significantly when tourist numbers drop, without formal layoffs.
Unpredictable Schedules and Financial Strain
The uncertainty of 'on call' work makes financial planning challenging. Owens described having a steady schedule of three to five shifts per week when she first joined Caesars. Now, she considers herself fortunate if her phone rings for work. This unpredictability has made her question her employment choice.
Owens commented, "If this was the situation, I would have never started."
While this system offers flexibility to employers, it creates instability for workers. They remain employed but without a reliable income. This situation affects their ability to meet financial commitments and plan for the future.
Employment Models
The 'on call' employment model is common in industries with fluctuating demand, such as hospitality. It allows businesses to adjust staffing levels quickly. However, it can leave workers with inconsistent hours and no guaranteed income, differentiating it from traditional part-time or full-time roles with fixed schedules.
Health Benefits at Risk
Beyond wages, reduced work hours can also affect employee benefits, especially health coverage. Under the Affordable Care Act (ACA), employees who average 30 hours per week may qualify for full-time status and associated health benefits. However, employers often use specific 'measurement periods' to determine eligibility.
For example, Walmart assesses part-time employees over a 60-day period to see if they average 30 hours weekly. For 'on call' workers in Las Vegas, inconsistent shifts can make it difficult to meet these thresholds. This can lead to a loss of health coverage.
Healthcare Costs
According to an analysis by KFF, average health spending reached $14,570 in 2023. Losing employer-sponsored health coverage can add significant financial pressure to workers already facing reduced income and rising living costs.
An MGM spokesperson stated that the company has not reduced its overall workforce. They noted that staffing schedules are always aligned with seasonal trends and guest demand. Caesars has not yet released a comment on the situation.
Challenges for New and Experienced Workers
The current situation in Las Vegas is not only impacting existing staff but also discouraging new job seekers. Kimberly Antes, who is looking for work in the sector, observed that even long-term employees are being affected. She mentioned a friend who lost consistent shifts after five servers were laid off.
Antes explained, "And they laid off 5 of the regular servers. Therefore, she's now pushed all the way down to the bottom of the list, has not worked in 3.5 weeks."
This highlights how reductions can create a ripple effect, pushing experienced workers to the bottom of the scheduling priority list. It underscores the fragility of employment in tourism-dependent cities.
Protecting Income and Benefits
For individuals working in tourism-driven areas, preparing for unpredictable income is crucial. This involves two main strategies: securing benefits and managing personal finances.
First, review health coverage options. If work hours fall below full-time, explore alternatives. These include a spouse's insurance plan, the ACA marketplace, or short-term health policies. This helps prevent gaps in coverage.
Second, financial preparation during busy periods is essential. Building an emergency fund specifically for slow seasons can provide a buffer. Even saving $25 to $50 a week can accumulate a significant amount over time to cover expenses when hours are cut.
Budgeting with the off-season in mind also helps. Try to live on a reduced version of your paycheck during peak months and save the extra. This combination of smart budgeting and a dedicated safety net can reduce reliance on immediate tourist rushes.
- Review health insurance: Look into ACA marketplace, spouse's plan, or short-term options.
- Build an emergency fund: Save consistently during busy periods for slower times.
- Budget conservatively: Plan finances based on lower income estimates even during peak seasons.
