Job incentives mulled

Meetings of the Governor's Office of Economic Development Board often are pragmatic: getting updates on state programs and initiatives, approving financial incentives to companies looking to add high-paying jobs, planning for upcoming economic development events.

But the board's most recent gathering featured a heavy dose of pondering. At issue was whether the board should continue offering incentives for companies to move to Utah or for existing companies to expand — adding jobs at a time when the state's unemployment rate is so low that existing employers often cannot get the employees they need.

Utah's unemployment rate was 2.6 percent in December, the same rate as November's.

Board Chairman David Simmons, who started the discussion, said he believed the board should continue with incentives, in part because the board's duties call for increasing the number of high-paying jobs in the state.

"One of the things we have focused on is ... quality jobs, that we're bringing quality jobs to the state. Even though we have a very low unemployment, there is a large labor pool who is going to want to fill those (quality) jobs," Simmons said.

"Sometimes we get a little concerned about do we incent jobs when we have this low unemployment rate? ... But as long as they're quality jobs, increasing the average wages, hopefully that is the answer. ... This continues to be our mandate and very necessary to do from the standpoint of the state."

Simmons said that a company looking to hire 100 people in the St. George area had no trouble getting more than 800 applications.

"This is one of the counties with a very low unemployment rate right now. The concern was, could they find enough people to fill those jobs. What they found was, the type of jobs they were and the wages that were being offered, there were plenty of applicants for those jobs," Simmons said.

He also said the board needs to take a long-range look at economic development. Many board decisions result in an increase in jobs five to 10 years later, he said.

"Too often we get too caught up in what happens this quarter or this year in terms of the state of Utah. ... And who knows what the state will look like five years from now? These jobs hopefully will allow the state to help to cushion some of the downturn that will be an inevitable part of the economic development for the state."