Utah job outlook in 2009 bleak
The state has been moving toward zero growth in employment for the past year, and the trend is going to continue, said Workforce Services' chief economist Mark Knold. The state's unemployment rate could reach 5.5 percent in 2009. Mirroring the nation's economic turmoil, the Utah economic outlook for 2009 has turned "quite bearish," he said.
"That means that it's going to get worse," he said in an interview. "It's going downhill."
A loss of 19,000 jobs in 2009 would be Utah's sharpest employment downturn since 1954, Knold said. Industries such as manufacturing, financial and business services, information technology and eventually the trade sector will likely feel the pain of the struggling economy.
The division's employment report for October estimated that the number of nonfarm wage and salaried jobs contracted 0.2 percent compared with the same period last year. It was the first time this year that Utah has experienced negative job growth.
September's employment growth rate was at 0.1 percent. Since 1950, Utah has averaged job growth of 3.3 percent,
"For us to go into a job loss environment is very, very much out of character," Knold said. "It's a testament to the overall economic environment around us."
The seasonally adjusted unemployment rate for October in Utah remained the same as September's rate, at 3.5 percent. In October 2007, the state's unemployment rate was 2.8 percent.
About 48,700 Utahns were considered unemployed in October, compared with 38,600 in October last year.
The nation's unemployment rate rose to 6.5 percent in October 2008, a 34 percent jump from October 2007, when the rate was 4.8 percent. Last month's national unemployment rate was up from September's 6.1 percent.
He said that despite the overall job losses in most employment categories, sectors that have withstood economic downturns are health care, education and government, and that scenario will likely continue.
Knold said Utah's job downturn has been concentrated mainly in the construction industry, which lost 13,400 jobs from October 2007 to October 2008.
"It is time for round two in the economic downturn that's affecting Utah," he said. "Round one was largely the housing market. ... Round two is the phase where now industries other than construction are starting to slump and will drive Utah's employment count into contraction."
Knold said that the federal bailout plan that was approved by Congress might help get the U.S. and state economies pointed in the right direction, but a turnaround will require time.
"We are forecasting that all of 2009 will largely be a job loss environment in Utah and nationally," he said. "In 2010, we are forecasting a small turnaround, but it is possible that the sluggishness could extend into 2010."
E-mail: jlee@desnews.com
Comments
- Lawyers earn fees from own laws 1:36 p.m.
- No. 2 fugitive mob boss nabbed 1:35 p.m.
- Frustrated Palestinians appeal to UN 1:25 p.m.
- 'Tweeters' to report on shuttle launch 1:24 p.m.
- Pet cemetery reflects dedication 12:58 p.m.
- Film honors NYC defense attorney 12:57 p.m.
- Redgraves recreates grandma in play 12:21 p.m.
- Can 65 be considered young now? 12:14 p.m.
- Marriage: having each other's back 12:13 p.m.
- Presidential libraries open history 12:04 p.m.
- SLC council OKs gay rights policies
360 - BYU happy to escape with victory
217 - TCU creams U.
203 - Editorial: Mormons and gay rights
200 - Will state consider gay rights law?
148 - Letters: Strange breed in Utah
132 - Can BYU root for (ick) Utah Utes?
130 - Utes remain silent about BCS
120 - RSL heads to MLS title game
107 - Celtics crush Jazz
104
Sears is holding a special VIP night Sunday, Nov. 15, in stores and online.
Maybe someone out there can help me understand how raising the state...
Where in recorded history - anywhere - has a government based on dogma and...
Nobody cares about soccer. Will RSL please reimburse the Utah taxpayers now?
Maynor Miles Matthews Koufos Fesenko Milsap If I were the coach these...
If only! Beating BSU is unlikely, but look at the other upsets this year. If...
Ute fans are hanging their hats on "we scored more points than BYU, so...
Examples of effective summits please?
Why not make a trip to Romney stadium on Friday and cheer the locals "AGGIES"...
It used to be that some people were bigots. Today,as many of thexe postings...
and Utah's pathetic defense gave up 55 to TCU, and it could have been worse ...
I am a Utah fan and my hope is that we will get to the point where our...


You can be the first to comment on this story.