July’s unemployment rate in Utah remains at a low 2.0%, unchanged across the past three months. The July national unemployment rate dropped to 3.5%.
In a press release, Mark Knold, Chief Economist at the Department of Workforce Services (DWS) reported, “High inflation and now two consecutive quarters of declining national Gross Domestic Product (GDP) would normally be accompanied by lowering job counts”. He also stated that neither is the case at both the national and state levels where job growth was aggressive in July.
Utah’s DWS also reports developments occurring across the nation in the labor market are swerving from past performance. Baby Boomers nationally are leaving the labor force faster than new ones are entering. The result is creating unfilled jobs, low GDP, challenging labor searches for employers, and higher inflation through increased wage bidding. The labor deficit is why negative GDP change is not converting into a jobs recession, according to Knold.
Utah’s July private sector employment achieved a year-over-year expansion of 3.9%, or a 56,600 job increase. Utah had eight of 10 major private-sector industry groups post net year-over-year job gains, led by Trade, Transportation, Utilities (13,600 jobs); Leisure and Hospitality (12,000 jobs); Education and Health Services (10,700 jobs); and Construction (8,900 jobs). Bundled with growth in government contracting opportunities at nearby Hill Air Force Base, Layton City continues to consistently lead regionally and strengthen economically.