Report: More Utahns out of work
There are no comments for this page [ Add Comment ]Wednesday, January 16, 2008
By Jeff DeMoss
Standard-Examiner staff
Job growth also slows
SALT LAKE CITY -- Utah's unemployment rate is above 3 percent for the first time in more than a year and job growth is slowing rapidly, according to new data from the state.
The Utah Department of Workforce Services reported Tuesday that the statewide unemployment rate for December was 3.2 percent, up from 2.8 percent in November and 2.6 percent a year earlier.
Last month was the first time the Utah jobless rate surpassed 3 percent since August 2006.
Meanwhile, job growth in the state fell for the fifth consecutive month. The growth rate for December was 3.6 percent, down from a 2007 peak of 4.7 percent in July.
The numbers still show above-average growth, but growth is tapering off at a noticeably faster rate, said Mark Knold, chief economist for DWS.
"Employment growth is starting to slow in bigger chunks," Knold said. "The three-tenths of a percent drop from November is the largest movement we've seen since the beginning of 2007."
Utah created about 44,800 jobs in 2007. An estimated 43,700 Utahns were unemployed in December, up from 34,000 in December 2006.
Knold said a general slowdown in the national economy, or at least the perception of a slowdown, is beginning to affect Utah.
"There is a real negative psychology surrounding the U.S. economic environment," he said.
"The business community and consumers become cautious, Utah being no exception."
A decline in residential real estate activity has hampered growth in several industries, most notably construction and finance.
Looking back at 2007, Knold said construction growth in Utah began to slow noticeably in September. The industry added jobs at a 7.4 percent annual pace in December, less than half of the growth rate at the start of the year.
The Utah job market still easily outpaces the U.S. market. Nationwide, unemployment stood at 5 percent for December, while job growth was at 0.9 percent, the Labor Department reported earlier this month.
Based on the steep drop in December, Knold said job growth in Utah could drop into the 2 percent range this year. But such a decline might be useful in the short term, he added.
"Considering the heady pace of Utah's economy over the past three years and the tight labor market it creates, not to mention the possibility of overbuilding and the stresses on the state's infrastructure, a Utah economic pause might not be a bad thing."
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