A desert state known for its casinos and scorching temperatures is seeing a jobs boom as workers and businesses increasingly flock from neighboring California.

Nevada’s game-changing lithium reserves are fueling the surge, with the mineral becoming increasingly valuable as demand for artificial intelligence technology grows.

“Economically, Nevada is a relatively small state being mentioned in the same breath as California, Texas, Florida,” David Schmidt, chief economist for Nevada’s Department of Employment, Training and Rehabilitation, told CNBC.

The jobs market is posting “really remarkable numbers that we’re seeing,” he added.

Nevada’s workforce grew 1.9% between April 2025 and April 2026, the fastest rate in the nation and well ahead of the 0.2% increase recorded nationally, the outlet reported, citing Bureau of Labor Statistics data.

The growth was so strong that roughly 12% of all new jobs created in the United States during that period were added in Nevada, despite the state accounting for only about 1% of the country’s population.

Economic leaders say the gains are the result of years of efforts to diversify Nevada’s economy beyond gambling and entertainment.

Professional and business services jobs led Nevada’s growth over the past year, followed by education and health services positions. Schmidt attributed some of that growth to Nevada’s favorable tax policies.

Nevada has also become increasingly attractive to companies pursuing new or expanded mining projects because of its bountiful lithium supplies, he said.

Lithium is a key component in batteries used to help run AI models, while Nevada’s roughly 110,000 square miles of open land have made it an attractive location for AI-related infrastructure, including data centers.

The hiring boom comes as the state’s gaming industry has softened — Nevada’s economy is becoming less dependent on gambling and tourism.

An analysis of federal data found that about 60% of new jobs added in the Las Vegas region between 2016 and 2025 came from industries outside hospitality, construction and government.

LV Petroleum CEO Kris Roach told CNBC he has hired hundreds of workers over the past year to staff the company’s restaurants and travel centers.

Roach said recruiting has been “very easy,” with some management openings drawing more than 100 applications.

He also pointed to a strong pool of white-collar workers, including former casino employees, for positions in finance and human resources.

“It’s a great state to operate in,” Roach said. “There’s so much untapped talent.”

Nevada’s population growth has also helped fuel the hiring boom.

Economists have linked part of that growth to the state’s proximity to California, with federal data showing Nevada’s population increased more than 62% between 2000 and 2025, compared with roughly 21% nationwide.

The state also remains less expensive than neighboring California, Idaho and Arizona.

Emma Keserich, who moved to Las Vegas from the Washington, D.C., area last year, said many newcomers are surprised by what they find.

“People think Las Vegas is just the Strip,” Keserich told CNBC. “There’s just more than what meets the eye.”