From Deseret News archives:
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
- Notre Dame QB punched at bar 3:42 p.m.
- RSL gets warm reception at Capitol 3:38 p.m.
- 2 excuted in China milk scandal 3:33 p.m.
- Winners of the Pie-Ku contest 3:18 p.m.
- Furry felons rob S. African tourists 3:15 p.m.
- 3 airlines fined in tarmac stranding 3:12 p.m.
- Guilty plea in girlfriend burning 3:11 p.m.
- Census worker killed himself 3:09 p.m.
- 'Old Dogs' lacks any bite of comedy 3:03 p.m.
- 'Fox' funniest animated film of year 3:03 p.m.
- Protests against Phoenix LDS temple
- Utah, BYU are top choices for bowls
- BYU would like friendlier rivalry
- Best prep football games of 2009
- BYU's Lamb, Jorgensen reprimanded
- KSL: Prostitution in Utah County
- Man trapped in own body for 23 yrs
- Kirilenko climbing blocks list
- 'Dancing' will fill out finale
- Boys basketball rankings
- Glenn Beck to enter politics?
221 - RSL wins MLS Cup on penalty kicks
202 - BYU would like friendlier rivalry
187 - Palin plans tour stop in Utah
178 - Protests against Phoenix LDS temple
170 - Bronco, Kyle rubber match
137 - Palin's book shows she's unqualified
134 - BYU records with win
132 - Officer cleared in Cardall Taser case
103 - BYU cuts Women's Research Inst.
103
Associated Press Personal Finance Writer Candice Choi offers gift-giving...
Case in point. Thank you for showing us all why Utah fans do not like BYU...
concealed carry is reality regarding your ability to defend yourself or...
This has gone on way too long ! What's wrong with our justice system ? What...
The Bauman story is as rediculous as the Kramer/Norman magical lugie story...
Just like every year San Juan will drop to #4 or #5 in the rankings and then...
BYU VS USC: USC 35 BYU 7 BYU VS OREGON STATE: OSU 28 BYU 21 BYU VS ARIZONA:...
BYU VS USC: USC 35 BYU 7 BYU VS OREGON STATE: OSU 28 BYU 21 BYU VS ARIZONA:...
I doubt very much that you are a Piute team member. I know these girls and...
ted salladore, I believe your'e in a dream world. Most Americans are...
The Presbyterian church did just that, they built right in front of the LDS...


You can be the first to comment on this story.