2026 Economic Report highlights resilient Utah economy despite national headwinds

Utah’s economy continued to demonstrate remarkable strength and continued growth last year despite obstacles presented by a complex national economic landscape. 

That’s the conclusion of the Kem C. Gardner Policy Institute’s 38th Economic Report to the Governor, presented to Gov. Spencer Cox recently at the 2026 Economic Outlook and Public Policy Summit in Salt Lake City.

The report projects a path of moderate expansion for the state throughout 2026, building on its solid foundation.

“The past year underscored Utah’s exceptional economic resilience, despite headwinds at the national level,” said Phil Dean, chief economist at the Gardner Institute. “As we look ahead to 2026, our forecast for moderate expansion draws from deep roots in Utah’s fundamental strengths: strong labor markets, a diverse economy and consistent population growth. While we remain vigilant about challenges such as housing affordability, Utah’s underlying economic framework appears poised for continued, sustainable progress.”

The report presented to Cox forecasts continued growth for Utah in the year ahead, albeit at a measured pace. The study calls for moderate job growth, supporting real wage gains with a projected 3.4 percent increase in average annual pay.

The state’s population is projected to grow by 1.3 percent, outpacing the national average but at a slower rate than Utah’s historical trend.

Other key 2025 economic performance highlights from the report
include:

Low Unemployment. Utah maintained a robust labor market with an unemployment rate of 3.3 percent, outperforming the national average and reflecting strong employer demand.

Job and Wage Growth. The state saw a 1.5 percent increase in jobs and a 3.2 percent rise in average annual wages, signaling healthy economic activity.

Population and Spending Growth. Utah’s population grew by 1.3 percent, complementing a 3.5 percent increase in taxable sales, a key indicator of consumer activity. This sustained influx of residents and spending underscores the state’s attractiveness and economic vitality, report authors concluded.

Industry Strength. Private education/health services and construction sectors led the way in job creation. These industries continue as significant pillars of the state’s diverse economy, contributing to employment figures.

Record Oil Production. Utah’s oil production reached an all-time high to an estimated 70 million barrels of crude oil in 2025. This peak in energy output highlights a strong sector and provides a boost to the state’s natural resource economy.

Housing Market Dynamics. While housing prices grew less than overall inflation, declining homeownership rates still pose a significant affordability challenge. This trend suggests that while the pace of price increases has cooled, access to homeownership remains a concern for many residents.

The complete report to the governor, along with a summary of its highlights, are available at the Gardner Institute website, gardner.utah.edu.