Job Growth Cools in Utah and Nation
Utah’s job boom appears to be coming to an end. One of the factors driving Utah’s real estate markets has always been plentiful jobs and attractive quality of life which has kept the flow of people from other states steady. Signs of a slow down are imminent.
Utah created 53,500 jobs in the year that ended in September, for an employment growth rate of 4.4 percent, the Utah Department of Workforce Services reported Tuesday. Although that rate remains higher than all other states, it is down from 4.5 percent in August, 4.7 percent in July and a peak of 5.4 percent in June 2006.
Utah’s rate will continue to slow down, said Workforce Services economist Mark Knold, who predicts employment growth will drop into the 3 percent range by next year.
Utah’s economists
are not that concerned yet. The State’s low unemployment rate has actually hampered growth. Utah should still remain a desirable place to relocate, but times are certainly changing.
Nationally, jobs are also on the downturn.
The number of newly laid off workers filing claims for unemployment benefits shot up by the largest amount since early February, a far bigger increase than had been expected.
The Labor Department reported Thursday that applications for jobless benefits hit 337,000 last week, an increase of 28,000 from the previous week. That was the biggest one-week surge since jobless claims jumped 42,000 the week of Feb. 10.
One week does not a trend make and the Labor Department loves to make after the fact adjustments. August’s disappointing job numbers ended up being revised upwards significantly and September’s ended up exceeding expectations.
Before we get into a panic, let’s remember we’re comparing against record numbers. A little dip doesn’t mean the end is near, but some healthy concern is justified especially in the wake of the real estate downturn. Until a trend develops, let’s just keep a watchful eye out.