From Deseret News archives:
Utah tops in job growth
56,800 nonfarm jobs added in a year is best in U.S., report says
The state's nonfarm job growth in July was 4.7 percent when compared with a year ago, and the 56,800 jobs added during that period is the best among all states, according to figures released Tuesday by the Utah Department of Workforce Services.
"I would characterize this as more of the same," said Mark Knold, chief economist for the department. "We've been sounding like a broken record this entire year in terms of the high job growth and a very low unemployment rate. So far, we're just continuing to maintain that kind of trend as we're going through 2007."
The 4.7 percent growth rate compares with an average of 3.3 percent per year that Utah has experienced since 1950 and equates to about 4,700 jobs being added each month. And it far outshines the national job growth rate of 1.3 percent in July.
Put another way, while Utah has less than 1 percent of all U.S. jobs, it accounts for about 3.2 percent of the country's new jobs.
Meanwhile, the national jobless rate in July was 4.6 percent.
Knold described Utah as being the bull's-eye of long-term growth in the West, and he's currently at a loss to see anything that could torpedo that.
"I'm sure there is, but I'm just not seeing what it is," he said.
One possibility is not having enough in-migration to meet the state's labor demands.
"Throughout this year, we've avoided that, obviously. We're getting strong amounts of in-migration. And the best news in that respect is the United States' economy is weak and showing signs of getting weaker," Knold said. "So what you end up with is incentives in other parts of the country for idled workers to look to Utah, to come here to work. The nation's economy is providing an incentive for those workers to come here."
Another potential trouble spot could stem from lessened demand for workers, perhaps from a mortgage crisis or a disruption in plans for building construction.
"The chances of that seem to be pretty small to me, so it's very difficult to even see any clouds on the horizon, let alone identifying one or two possible ones. We're just really in some kind of a groove right now," Knold said.
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