Although the national unemployment rate continues to inch downward, Utah joblessness has stayed steady at 2 percent for the past three months, according to figures released by the Utah Department of Workforce Services (DWS). The steady rate comes despite soaring inflation and a decline in the gross domestic product (GDP), both of which are normally accompanied by a decline in jobs. Utah’s 2 percent jobless rate translates to approximately 35,300 workers not in the labor force.
The national unemployment rate for July dropped just one-tenth of a percentage point to 3.5 percent.
Utah’s nonfarm payroll employment for July increased an estimated 3.5 percent over the past 12 months, with the state’s economy adding a cumulative 56,600 jobs since July 2021. Utah’s current job count stands at 1,664,300.
“High inflation and now two consecutive quarters of declining national gross domestic product would normally be accompanied by lowering job counts” said Mark Knold, chief economist at DWS. “But neither is the case at both the national and state levels where job growth was aggressive in July. There are developments occurring across the nation in the labor market that are diverging from past performance. Nationally, baby boomers are leaving the labor force faster than new ones are entering. This is producing unfilled jobs, lowering GDP, making labor searches difficult and contributing to higher inflation through increased wage bidding. This labor deficit is why negative GDP change is not morphing into a jobs recession.”
Utah’s July private-sector employment recorded a year-over-year expansion of 3.9 percent, or a 56,600-job increase. Eight of Utah’s 10 major private-sector industry groups posted net year-over-year job gains, led by trade, transportation and utilities (up 13,600 jobs); leisure and hospitality (up 12,000 jobs); education and health services (up 10,700 jobs); and construction (up 8,900 jobs). The two sectors with a drop in the job count are professional and business services (down 2,800 jobs) and financial activities (down 1,700 jobs).