Utah's Economy: First hints of recovery

(Utah's Economy: Commerce Real Estate Solutions) The February meeting of Utah’s Revenue Assumption Committee1 produced further evidence of the beginning of an economic recovery in Utah. In summary, the projections for Utah’s economic indicators show that the worst is over, with modest improvement expected in 2010 and accelerating gains in 2011.

Some signs of improvement:

Job Market Conditions

The number of job openings posted by employers with the Utah Department of Workforce Services has increased in the past few months. Posted job openings are now running at about double the rate of one year ago; 20,000 versus 10,000.

Initial unemployment claims are down 13 percent compared to a year ago; from an average of 4,150 new claims weekly in January 2009 to 3,600 in January 2010.

The number of temporary workers is growing. Increases in temporary workers indicates a willingness by employers to add workers; this is generally one of the first signs of a recovering labor market. The number of temporary workers has increased from 14,800 to 17,700 between April and September of 2009.

Job losses in 2010 will slow to 18,000, down from the 61,000 in 2009. In 2011 job gains are expected to be near 20,000.

In Utah the unemployment rate for males in the prime working age group of 25-54 years is 6.5 percent compared to 11.1 percent nationally. Consequently family incomes and economic well-being have fared better in Utah.

Original Report