Utah employment picture is improving

Utah added 2,700 new jobs in December while the state's unemployment rate dipped 0.2 percentage point, according to data released Tuesday that indicates the economy is moving in the right direction.

"We reported 0.2 percent (job) growth for December, but as we continue to revise our numbers, it may be even higher than that," said Mark Knold, senior economist for the Utah Department of Workforce Services. "We may find that we were at 0.4 percent or even 0.5 percent. Which is much below where we wish we were but much higher than we have been."

Beginning this month, the Utah unemployment statistics will be released on the second Tuesday after the national figures are released. The change was made in anticipation of forthcoming changes in the U.S. Bureau of Labor Statistics' unemployment statistics program, which the DWS said plays a key role in formulating Utah's unemployment rate.

About 57,300 Utahns were out of work in December, according to the department. In December 2002, 74,000 Utahns, or 6.3 percent, were unemployed.

Manufacturing saw the biggest losses last month, according to the Workforce Services report, shedding 1,400 jobs. Construction trimmed 500 jobs, followed by 400 in trade, transportation and utilities.

On the brighter side, education and health added 2,800 jobs in December, and the professional and business sector added 1,100 new jobs.

Knold said he expects Utah's economy to gain momentum in 2004, peaking in the later months.

"You don't go from flat to turbo in a matter of months," he said. "It's a slow building process. It's nice to see that in Utah, we're in that building process. I'm not so convinced that we're in that process on a national level yet. But we'll get there."

The U.S. Bureau of Labor Statistics reported earlier this month that the national unemployment rate declined to 5.7 percent in December, from 5.9 percent the month before. Other recently revised national data found that the non-seasonally adjusted, year-over job count declined 0.5 percent in December, which was weaker than November's 0.2 percent decline.

"Over the long history of our economy, Utah has outperformed the national economy," Knold said. "For us to move above the national level is us moving back to where we're used to being."

Knold predicted that Utah's employment growth rate will build, peaking in the November/December period.

"We need 2.5 percent growth or higher, and I'm not anticipating we'll hit that this year," he said. "This year will be a climb toward that."

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E-mail: jnii@desnews.com