By Lesley Mitchell
The Salt Lake Tribune
Article Last Updated: 01/16/2008 02:32:59 AM MST
The state created 44,800 jobs in the year that ended in December, for an employment growth rate of 3.6 percent,
down from 3.9 percent in November and 4.5 percent in August, the Utah Department of Workforce Services said
today.
Although the state's rate of job creation is much better than the national rate of just under 1 percent, Utah's rate has
been on a downward trend for the past several months and is now far from the 5.4 percent
pace logged in the year that ended in June 2006.
"I'm getting a little more pessimistic about how far job growth is going to drop down into this year. I think now it's going
to drop down into the 2 percent range," said Mark Knold, chief economist for the Department of Workforce Services.
He had been predicting growth in the 3 percent range, which would be below the state's long-term average of 3.3
percent.
The national slowdown is certainly having some dampening effect on Utah's economy. But the largest factor is the
slump in residential real estate.
"We've seen a pretty big jump in unemployment claims related to the construction industry," Knold said. About 2,200
people in that sector filed for unemployment benefits in December 2007, compared with 1,300 in December 2006.
Several home builders have laid off administrative workers in recent months, and subcontractors that two years ago
were busy pouring concrete, framing, roofing and putting in electrical and plumbing systems just are not as busy
these days.
Knold said there has been some spillover into other employment sectors.
"You have to think if we're not selling as many houses, we're not going to need as many mortgage people, title, real
estate people," he said.
The slowdown in job growth has pushed unemployment higher. Utah's rate in December was 3.2 percent, up from 2.8
percent for November, but well below the national rate of 4.7 percent.
The Salt Lake Tribune
Article Last Updated: 01/16/2008 02:32:59 AM MST
The state created 44,800 jobs in the year that ended in December, for an employment growth rate of 3.6 percent,
down from 3.9 percent in November and 4.5 percent in August, the Utah Department of Workforce Services said
today.
Although the state's rate of job creation is much better than the national rate of just under 1 percent, Utah's rate has
been on a downward trend for the past several months and is now far from the 5.4 percent
pace logged in the year that ended in June 2006.
"I'm getting a little more pessimistic about how far job growth is going to drop down into this year. I think now it's going
to drop down into the 2 percent range," said Mark Knold, chief economist for the Department of Workforce Services.
He had been predicting growth in the 3 percent range, which would be below the state's long-term average of 3.3
percent.
The national slowdown is certainly having some dampening effect on Utah's economy. But the largest factor is the
slump in residential real estate.
"We've seen a pretty big jump in unemployment claims related to the construction industry," Knold said. About 2,200
people in that sector filed for unemployment benefits in December 2007, compared with 1,300 in December 2006.
Several home builders have laid off administrative workers in recent months, and subcontractors that two years ago
were busy pouring concrete, framing, roofing and putting in electrical and plumbing systems just are not as busy
these days.
Knold said there has been some spillover into other employment sectors.
"You have to think if we're not selling as many houses, we're not going to need as many mortgage people, title, real
estate people," he said.
The slowdown in job growth has pushed unemployment higher. Utah's rate in December was 3.2 percent, up from 2.8
percent for November, but well below the national rate of 4.7 percent.
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