By Steven Oberbeck
The Salt Lake Tribune
Article Launched: 11/14/2007 12:00:00 AM MST
Utah's job-creation rate downshifted in October and altered a key sector of the employment landscape, but that
didn't prevent the state from out distancing all others in the race for economic prosperity.
Even with the state's job-growth rate moderating from 4.4 percent in September to 4.3 percent last month, Utah
remains far and away the best economically performing state in the nation, said Mark Knold, senior labor market
economist with the Utah Department of Workforce Services.
"The only real area of weakness we're seeing is in the residential sector of the construction industry," Knold said
Tuesday. "And that isn't a problem of too few people wanting to buy new homes, but more the result of the
mortgage lenders getting skittish about the loans they're willing to make."
The Utah State Tax Commission is reporting that $453.9 million was collected in sales tax during July, August and
September - the first three months of the state's fiscal year - for a slight 0.32 percent decline from the same period
a year ago.
But Knold pointed out that retail trade, which is the primary industry that captures the spending of consumers, is
naturally positioned for growth as a result of the expanding state population and the growth in the number of Utah
households.
The flip side of Utah's job-growth figures - the unemployment rate - also reflects the strength of the state's
economy.
Utah's figure is a low 2.8 percent, compared with the national unemployment rate of 4.7 percent. Still, that 2.8
percent represented a slight increase in the number of Utahns without jobs - 37,700 in October, compared with
35,000 in October 2006.
Kelly Matthews, executive vice president and economist for Wells Fargo Bank, agreed that Utah's employment
picture is the best of all the states.
Although he expects the pace of job growth to continue to slow to around 3.9 percent during the first six months of
next year, he believes Utah will continue to lead the nation.
"If we can hold on to 3.8 or 3.9 percent job growth next year while at the same time the national GDP [gross
domestic product] weakens, it will represent real good economic performance for the state," Matthews said.
Creighton University professor of economics Ernie P. Goss, who tracks the economies of Utah and other Western
states, said if he had to wager on the economic performance of any state next year, his money would be on Utah.
"Utah's job growth might be slowing a little, but it is still a heck of a lot stronger than anywhere else in the country,"
Goss said.
The Salt Lake Tribune
Article Launched: 11/14/2007 12:00:00 AM MST
Utah's job-creation rate downshifted in October and altered a key sector of the employment landscape, but that
didn't prevent the state from out distancing all others in the race for economic prosperity.
Even with the state's job-growth rate moderating from 4.4 percent in September to 4.3 percent last month, Utah
remains far and away the best economically performing state in the nation, said Mark Knold, senior labor market
economist with the Utah Department of Workforce Services.
"The only real area of weakness we're seeing is in the residential sector of the construction industry," Knold said
Tuesday. "And that isn't a problem of too few people wanting to buy new homes, but more the result of the
mortgage lenders getting skittish about the loans they're willing to make."
The Utah State Tax Commission is reporting that $453.9 million was collected in sales tax during July, August and
September - the first three months of the state's fiscal year - for a slight 0.32 percent decline from the same period
a year ago.
But Knold pointed out that retail trade, which is the primary industry that captures the spending of consumers, is
naturally positioned for growth as a result of the expanding state population and the growth in the number of Utah
households.
The flip side of Utah's job-growth figures - the unemployment rate - also reflects the strength of the state's
economy.
Utah's figure is a low 2.8 percent, compared with the national unemployment rate of 4.7 percent. Still, that 2.8
percent represented a slight increase in the number of Utahns without jobs - 37,700 in October, compared with
35,000 in October 2006.
Kelly Matthews, executive vice president and economist for Wells Fargo Bank, agreed that Utah's employment
picture is the best of all the states.
Although he expects the pace of job growth to continue to slow to around 3.9 percent during the first six months of
next year, he believes Utah will continue to lead the nation.
"If we can hold on to 3.8 or 3.9 percent job growth next year while at the same time the national GDP [gross
domestic product] weakens, it will represent real good economic performance for the state," Matthews said.
Creighton University professor of economics Ernie P. Goss, who tracks the economies of Utah and other Western
states, said if he had to wager on the economic performance of any state next year, his money would be on Utah.
"Utah's job growth might be slowing a little, but it is still a heck of a lot stronger than anywhere else in the country,"
Goss said.
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Kirk's observation: Job growth fuels an inflow of new residents, which puts pressure on the rental market and
drives up rents. When that happens, renters become buyers, which keeps the real estate market strong. With all
of these factors in place, Salt Lake City real estate is a great investment.
drives up rents. When that happens, renters become buyers, which keeps the real estate market strong. With all
of these factors in place, Salt Lake City real estate is a great investment.