New Report Says Secretary of State Data Indicates Job Market Stabilization and Potential for Expansion
A Special Business Report from the Nevada Secretary of State
New Report Says Secretary of State Data Indicates Job Market Stabilization and Potential for Expansion
While anecdotal reports and selected economic indicators suggest economic conditions may be improving, the latest data sourced to the Nevada Secretary of State's office confirms the worst of the declines are in the rear view mirror and potential for future expansion may be on the horizon....
A new study conducted by Applied Analysis, a Nevada-based research and analysis firm, identified new business entity filings as a leading indicator of future economic activity. With all new businesses to the state required to register, entity filings with the Secretary of State's office tend to indicate the level of investment taking place in the community. During historical economic cycles, an improving number of new business entities ultimately led to job creation. The reverse was also true as the economy turned toward recession.
At Secretary of State Ross Miller's request, Applied Analysis looked at the number of new business filings in the last quarter of 2010 and noted they had turned positive for the first time since mid-2006. Should historical trends hold true to form, general economic growth - including increased stability within the job market - should follow. When the new entity filings are charted with employment figures, it becomes clear that the new business filing statistics kept by the Secretary of State's office may be a reliable leading indicator of future economic activity. The conclusion is supported by what Applied Analysis identified as a lagging indicator - the filings that entities must submit on an annual basis once they are initially formed.
According to Applied Analysis Principal Jeremy Aguero, the research firm has analyzed hundreds of economic indicators and concluded that new business filings reported by the Secretary of State's office provide meaningful insight and may even be an early warning system of future economic instability. Aguero also indicated that since these data have not been reported on a recurring basis, they may have been overlooked in the past. The Quarterly Economic & Business Activity Report generated by Nevada Secretary of State with the support of Applied Analysis is expected to be published on a recurring, quarterly basis.
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