Utah construction employment continues to fall

Even though the construction sector represents a relatively small portion of Utah total employment, about 8 percent, it plays a key role in determining where the economy might turn in the future. Construction purchases are sales taxable. In addition, the economic multiplier for construction purchases is relatively high compared to other sectors.

After a sustained four-year boom, construction employment in Utah began to decline in February 2008. In May 2009, it had fallen 23 percent compared to a year earlier (the source of this data is from the U.S. Bureau of Labor Statistics through the St. Louis Federal Reserve Bank Web site and appears 5 percent worse than data listed on the previous page from Utah's Department of Workforce Services).

During the last three months, March through May, Utah construction employment fell 22.8 percent. March's 23.4 percent decline may end up being the low point for this recession as construction employment appears to have stabilized at the 75,000 to 80,000 level. Expect it to continue to fall relative to 2008 levels about 20 percent over the next few months, and then expect lower declines later this year.

Sources: Utah League of Cities and Towns, Doug Macdonald