A still-strong labor market, slipping consumer confidence and shrinking labor force participation highlight a recently released Utah economic gauge.
Components of the March version of the Roadmap to Prosperity Economic Dashboard reflect the impacts of economic uncertainty that is a hallmark of early 2025.
The dashboard is produced in a partnership between the Salt Lake Chamber and the University of Utah’s Kem C. Gardner Policy Institute as a way to inform business leaders’ understanding of Utah’s economy. The tool prioritizes key data on the state’s economic outlook and actionable context for decision-makers.
Among the insights in the March report are Utah’s relatively strong labor market. The state’s February employment growth was fourth among states, at 1.8 percent, while other states are seeing labor markets continue to moderate. Utah’s unemployment rate of 3.2 percent in February was the 11th-lowest among states. “Ongoing economic uncertainty continues to weigh on labor markets, both in Utah and nationwide,” the report states.
Utah consumers generally are more optimistic than the rest of the U.S. Utah’s consumer sentiment dropped 8 percent in March, but the figure for the U.S. was 11.9 percent. “Consumer unease continues to rise, with national consumer sentiment reaching its lowest level since November 2022,” the report says. “Consistent with historical trends, Utahns remained more optimistic, though economic and policy-related uncertainties weigh on confidence, both locally and nationwide.”
Meanwhile, Utah’s labor force participation rate has returned to levels seen before the COVID-19 pandemic after rising throughout recent labor market shortages. The state’s labor force participation rate began declining in 2023 and continued to edge downward throughout 2024 and into 2025. In February, the Utah rate was 68.4 percent, while the national rate was 62.4 percent. “The U.S. labor force participation rate remains below pre-pandemic levels, in part due to aging demographics,” the report states.
“As economic uncertainty continues, Utah’s labor markets are responding to the pressure with strength,” said Derek Miller, president and CEO of the Salt Lake Chamber. “Even with steep declines in both Utah and U.S. consumer sentiment, employment growth in Utah demonstrates our resiliency and ability to adapt to shifting economic conditions. Moving forward, we can prepare for additional changes and unease by remaining attentive to repercussions of applicable policies and seeking ways to continually innovate and promote growth.”
“While Utah’s labor market continues to demonstrate resilience, ranking among the top states for employment growth, there are signs of moderation and consumer unease,” said Natalie Gochnour, director of the Gardner Institute. “Utah has the strongest economy in the nation and is favorably positioned to weather a slowdown, but decision-makers must remain vigilant in the face of ongoing economic uncertainties and federal policy shifts that weigh on confidence locally and nationwide.”
The Roadmap to Prosperity Dashboard is available at https://slchamber.com/resources/roadmap-dashboard/.