Jobless rate drops

Utah's December 2005 jobless rate came in more than a full percentage point lower than it was during the same month of 2004, signalling a strong start to what may be a stronger-than-previously-expected new year, the state Department of Workforce Services reported Tuesday.

Utah's seasonally adjusted unemployment rate for December was 3.8 percent, down from the unrevised 4 percent reported in November and 1.2 percentage points lower than the 5 percent jobless rate registered in December 2004, the department reported.

"We've certainly seen an improvement in the Utah economy, and that has translated in the unemployment rate dropping," said Austin Sargent, labor market economist with the department. "Overall, it's looking positive for us. The only ones who probably won't be happy about that are the employers, who are finding the labor market tightening."

Total employment, or the year-over change in the number of nonfarm wage and salaried jobs, was up 3.9 percent in December, according to the department report. Job growth for November was revised up by 0.1 percentage point to 3.7 percent.

Over the last 12 months, Utah's economy has added about 44,000 new jobs. All of the employment sectors measured by the department reported growth, Sargent said, led by construction and professional and business services, which added 10,000 jobs and 8,600 jobs, respectively, during the year-over period. The trade, transportation and utilities sector added 7,000 jobs during the past 12 months, followed by education and health, which added 5,000 jobs.

"We are noticing a renewed strengthening in the Utah economy," Mark Knold, senior economist with Workforce Services, wrote in the report. "Growth had approached 4 percent in the early part of 2005, but during the late spring through autumn period, employment growth had leveled off in the mid 3-percent range. We are now seeing that the growth rate is once again moving upward, and it looks sustainable. Therefore, the outlook as we close this year and move into 2006 is that Utah's employment situation will steadily improve."

Nationally, Sargent said economists' consensus was that 2006 would be another good year, albeit "not quite as strong as 2005." Earlier this month the U.S. Labor Department reported a 0.1 percent drop in the national unemployment rate in December, to 4.9 percent. During the year-over period, the department reported, the national economy added 2 million new jobs, a growth rate of 1.5 percent.

"Right now," Sargent said, "the way 2005 ended for Utah, it might be that 2006 will be its equal, if not better, for Utah. They're quite positive, the signs we're seeing."

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