Utah jobless rate dips slightly

Utah's jobless rate dipped 0.6 percentage point in September compared to the same month last year, and one local economist said the state is positioned well to weather what may be a difficult winter.

"I am pleased that the Utah economy was in really good shape when the energy prices started going up," Mark Knold, senior economist at the Utah Department of Workforce Services, said Tuesday. "If you know you're facing an economic question mark, or if there's a situation arising, your preference is to be in as good a position as you can be when you start. And we're one of the best-performing economies in the nation, which lays the foundation to work our way through the energy cost situation."

In its report released Tuesday, the department reported that Utah's unemployment rate was 4.6 percent in September, compared to 5.2 percent in the same month of 2004. However, last month's rate was up 0.2 percentage point from August's unrevised 4.4 percent jobless rate.

About 57,600 people were unemployed in Utah last month, compared to 62,300 in September 2004.

Total employment, the year-over change in the number of non-farm wage and salaried jobs, was up 3.6 percent last month, the department reported. September's rate was unchanged from August's unrevised findings.

The construction sector led new hiring during the year-over period, bringing on 8,900 workers since September 2004. Professional and business services added 8,400 jobs during the last 12 months, while the trade, transportation and utilities sector added 5,400 jobs. Education and health added 4,500 new jobs during the year-over period, followed by government, which brought on 3,200 workers.

"Growth rates have leveled off over the past four months, but there is still plenty of economic activity to keep Utah as one of the best-performing states in the nation," Knold wrote in the report. "I do anticipate that the growth rate will slow some as we finish out this year. Increased costs for goods and services, all impacted by higher fuel prices, will be the moderating cause."

Earlier this month the U.S. Labor Department reported that the nation's unemployment rate rose to 5.1 percent in September, reflecting in part the impact of Hurricane Katrina. Total employment fell by 35,000 jobs during the year-over period, the Labor Department reported, which followed revised job gains of 277,000 in July and 211,000 in August.