Utah economy 'chugs along'

Utah's economic environment continues to "chug along," according to the latest jobs data released Tuesday by the state's Department of Workforce Services.

Utah's unemployment rate was down 0.4 percentage points to 4.9 percent in May, the department reported. About 60,700 people were jobless last month, compared to an estimated 63,300 in May 2004.

"We're kind of just chugging along," said Mark Knold, senior economist at the department. "We're moving along at the same pace we have over the last six months or so, after the big build-up from 2003 to 2004. We've hit the high point, and now we're on the plateau, so to speak."

Total employment, the year-over change in the number of non-farm wage and salaried jobs, increased by about 37,000 jobs, or 3.4 percent, in May. April's total employment change also was revised down 0.1 percentage point, to 3.4 percent.

Professional and business services led the way, adding 7,600 jobs in the May 2004-May 2005 period, according to the department. Of those, Knold said 4,700 jobs were in higher-paying categories, such as professional, scientific and tech- nical service jobs.

The construction industry also performed well, bringing on 6,800 new workers in the year-over period. About 6,000 new jobs were added in the trade, transportation and utilities sector, while the education and health sector reported 3,800 new jobs in the year-over period.

For the second half of 2005, Knold said he expects more of the same.

"I think the (job) growth rates will still be good, in the mid-3 percent range," he said. "But I don't anticipate it going any higher than that for the rest of the year. That's not a downer. It's just that 2004 got better and better, so we're comparing against a stronger period. To get higher growth rates, you not only have to match what happened last year, you have to exceed it. I think we've reached the peak and are now riding the plateau."

The national jobless numbers showed similar steadiness. Earlier this month, the U.S. Labor Department reported that the unemployment rate was 5.1 percent, down from 5.2 percent in April 2005, and significantly down from 5.6 percent reported in May 2004. About 7.6 million people nationwide were without work last month.

Total employment fell short of analysts' expectations, at 78,000 jobs, the Labor Department reported.

Looking ahead, Knold said he's bullish about the economic conditions in the West. Idaho, Nevada, Arizona and Oregon continue to post strong growth numbers along with Utah, he said. The only real concerns might be in the bigger picture.