From Deseret News archives:

Jobs growth buoying Utah economy

3.7% rate puts state 2nd in nation, behind Nevada

Published: Wednesday, March 16, 2005 9:23 a.m. MST
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Construction was one industry sector showing strength during the past year, adding about 6,600 new jobs in Utah. The trade, transportation and utilities industry added about 7,600, bolstered by Wal-Mart, Kohl's and other national retailers expanding operations. Other growth sectors were professional and business services, with about 5,500 new jobs; education and health services, about 4,400; leisure and hospitality, about 3,900; government, about 3,600; and manufacturing, about 2,700.

The department also noted that much of the job growth is occurring outside Salt Lake County, describing Washington County's economic boom as "almost unreasonable." Daggett was the only county in the state with a year-over-year employment decline.

But Knold noted that Utah has had periods of 10 to 15 years where growth was in the 6 percent range, "so obviously there is room for more growth." He predicted that manufacturing could add even more jobs.

"That's interesting to say about that industry, because over the past seven years, all we've been talking about are the job cuts in that industry. Now it seems to be in a bit of a reversal of that," Knold said.

So, what could derail Utah's job climb? He said high energy prices would affect the national economy, perhaps to the point of a recession or severe slowdown.

"But that doesn't mean it has to happen in Utah. We have ridden right over energy-induced recessions in the past," he said, adding that any housing bubble bursting likewise would not hurt Utah as much as other areas of the country.

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"You could get a slowing down of the economy, but I can't see a stopping or a reversal again. Utah's situation and its own unique characteristics are enough to carry it over a potential national downturn."

Earlier this month, the U.S. Labor Department reported that the overall national unemployment rate rose to 5.4 percent in February from 5.2 percent in January.

Utah's job rebound has taken place "without a lot of underpinning support of the national economy," Knold said. "It's improving, yes, but it's still tepid. There's room for improvement there. An underlying continued improvement of the national economy has the potential to push us even higher."


E-mail: bwallace@desnews.com

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