Why does Nevada have the highest unemployment rate?

Record home foreclosures reduced home building and the resultant construction trade. National economic conditions reduced discretionary income and as a result, Nevada's primary industry, gaming. Nevada's budget crunch also meant reduction in school, government, and other industries' employment as well. Nevada had enjoyed the nation's highest boom in the previous years and it was only natural that it would feel the adverse effects in the same manner.
My initial guess would be that Nevada is a service based economy. Therefore, its income comes from casinos, restaurants, tours; essentially tourism. Since the financial collapse of 2008 unnecessary expenses (i.e. travel) has significantly fallen. Therefore, this has caused a loss of jobs and has increased unemployment. Surprisingly its unemployment is lower than Michigan. However, since it is a service industry it depends on tourists. Lack of tourists=lack of jobs.

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Additionally, with the highest foreclosure rate in the nation, there is a glut of vacant homes on the market, which translates into no jobs available for the construction industry - a domino effect.