Utahns seeing decline in real wages

New report says state still lagging in its economic recovery

Published: Saturday, Sept. 4, 2004 9:03 p.m. MDT
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Utah workers are continuing to see a decline in their real wages as the state continues to lag in its economic recovery, according to a report released today by Utah Issues.

"The State of Working Utah 2004" report says Utah has the nation's highest bankruptcy rate at one for every 36.5 households. And more than 80 percent of Utah workers in 2003 did not earn enough money to support a family with just one working parent, the report said.

The report by Utah Issues, a nonprofit organization with a mission of seeking long-term solutions to poverty, suggests that Utah has yet to recover from the recession, which started in March 2001 and officially ended in November, 2001.

The report suggests that Utah isn't alone. Alaska was the only state in the nation with sufficient job growth since the recession began, according to the report.

"While many have said that the economy is recovering," said Sara Wilhelm, Utah Issues economist. "Utah's working households . . . are still facing unemployment, under-employment and wage declines."

The report shows Utah's real median wages of $12.20 were $1.20 less than the nation's. The report says that median real wages, or purchasing power of wages, declined by 3 percent in Utah since 1979. Nationally, real wages grew by 10 percent during that time.

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The report's findings weren't all negative. The report says 64 percent of Utahns had job-based health insurance coverage, a larger percentage than the nation as a whole. It also shows a significantly higher labor participation for nearly every demographic category in Utah than the nation.

The report shows slight job growth — 0.5 percent — since the recession began. However, it shows a rise in the working age population of 7.3 percent, leaving a shortfall of 74,000 jobs.

Other findings in the report include:

• The gap between men's and women's wages ($3.18 per hour) is narrowing, partially because of a decrease in men's wages, but is wider than the nation's.

• The unemployment rate in July 2004 was 4.8 percent. It was 3.6 percent in February 2001, prior to the recession.

• 14.2 percent of Utah's unemployed workers in 2003 were out of work for more than 26 weeks.

• When adjusted for inflation, the value of minimum wage in Utah fell from $6.92 in 1979 to $5.15 in 2004.


E-mail: dbulkeley@desnews.com

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