Usually, online casino supporters point at a lower local unemployment rate as a casino is planned as proof that casinos are growing local jobs. As the local unemployment rate fell following the casino’s opening, the casino had to raise the local unemployment rate. The degree of unemployment in the state will be improved relative to the increases in the unemployment rate in the surrounding region over the same time frame.
If the changes are about the same, all of the job growth in the Casino Area could be the result of the usual shift in the business cycle (economic movements in other areas of the economy) and not casino production. When unemployment decreases in the local area after the casino ‘s implementation are greater than those in the state.
Comparison of local changes in unemployment with state changes in unemployment is important. Local factors should also be considered when determining local unemployment rates before and during the opening of a casino, including population patterns and circumstances in the regional sector. Looking at local income inequalities over time without understanding of population trends and the state-wide economic cycle, one could see casinos’ job advantages in the wrong sense.
The basic explanation for increased employment is that a casino project needs labour, which comes from the local community. This will in turn, increase unemployment in the region. The question is not only that casinos are reducing unemployment but that unemployment is dropping for them. Most casino positions require some type of expertise, whether it’s accounting, cards, security or some other expertise. If a casino decides to move with a relatively poorly qualified workforce to a rural area, the casino will likely attract professional staff from outside the state. When this job stays outside the local region and workers move to the casinos, otherwise there will be unemployment in the local community.
If any professional workers choose to move around the casino, the rate of unemployment in the local area (which is separated by population) decreases as the workforce has risen. A reduced rate of unemployment is often viewed as evidence that casinos have boosted local work in a good way. However, it should be remembered that unemployment for the original, relatively less qualified population remains mostly constant, including better trained immigrants seeking work in a casino. Jobs of these immigrants has raised the unemployment rate.
The key lesson about casinos and their effect on the local unemployment rate of the original population is that local authorities and the citizenry need to know how the new casino would work for them. It cannot be fulfilled the guarantee that the original population should work as a justification for the creation of casinos more often than not. For a relatively urban environment, there is theoretically enough diversity of population to ensure the availability of locally skilled workers. Nonetheless, in rural areas the majority of the workers will be outside the metropolitan area, leaving the unemployment rate of the initial population unchanged.