Unemployment rate drops a notch
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No Comments [ Add Comment ]By Jeff DeMoss
Standard-Examiner staff
jdemoss@standard.net
O
GDEN -- Utah's strong job growth and low unemployment should help residents deal with any fallout that might come from a nationwide crisis in the mortgage industry, a leading state economist says.
The statewide unemployment rate slipped from 2.7 percent in July to 2.6 percent in August, the Utah Department of Workforce Services reported Tuesday.
Job growth in Utah slipped from July's 4.7 percent pace, but at 4.5 percent remained well above the national average of 1.1 percent and the long-term state average of 3.3 percent.
The state has added more than 54,500 jobs in the past year. Salt Lake and Utah counties accounted for nearly two-thirds of those jobs, while the six Top of Utah counties accounted for more than 17 percent.
Mark Knold, chief economist for the Department of Workforce Services, said that while job growth is likely to taper off in the months ahead, "our growth will still remain aggressive and above average."
While they were below the state average, Top of Utah counties reported strong growth rates for last month.
From August 2006 to August 2007, Davis County added more than 4,000 jobs, while employment in Weber County increased by more than 3,000.
Construction continued to lead all industries in statewide growth, with 12,200 jobs added in the 12-month period, but a decline in construction growth in recent months indicates a larger downward trend, Knold said.
Tuesday's report shows growth across all major industries in the state.
The U.S. Department of Labor reported earlier this month that the national unemployment rate for August was 4.6 percent, unchanged from July.
Knold said the strong economy in Utah should help stave off any negative effects of the current subprime mortgage situation, where millions of Americans who qualified for adjustable-rate home loans and other creative financing options are now seeing their loan payments skyrocket.
"Utah didn't experience a high usage of this mortgage voodoo, so our exposure to its negativity is limited," he said. "Even those who did use this financing vehicle may be able to weather their mortgage-rate adjustments, anchored upon Utah's strong job market and wage increases."
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