Utah’s labor market remains tight in 2019

Is your business struggling to recruit and keep quality employees? If so, that means you’re in the mainstream of Utah businesses. In fact, the 2019 Economic Report to the Governor says labor shortages remain one of the state’s key challenges. There’s little relief in sight for employers this year: The annual unemployment rate is expected to drop from 3.1 percent last year to 3 percent this year.

The recent low unemployment rates are a defining characteristic of Utah’s post–Great Recession expansion, the report, prepared by the Utah Economic Council, said. “Only two years in the past 70 years, 2006 and 2007, have had lower unemployment rates.”

While the labor shortages are hard on businesses, employees are seeing more job opportunities and improving wages. The average pay per job in Utah increased by 3.8 percent last year to $47,441, helped in part by changes in federal tax policy. This year’s forecast, which the report says might be too conservative, is for a 2.5 percent average wage growth.

Aside from the labor market, the report to the governor showed that Utah’s real GDP (the value of goods and services produced in the state) rose by 2.5 percent to $150.1 billion in 2017, the last year for which numbers are available. That was the 12th highest growth rate in the nation. The national GDP, after inflation, grew by 2.2 percent.

Of Utah’s production in 2017, 88 percent came from private industry. Seven sectors had growth of greater than 5 percent — arts and entertainment, construction, professional, professional and business services, wholesale trade, mining, information and other services. The growth in large technology companies and startups is driving a lot of the economic gains in the state, the report found.

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