Figures released by the Utah Department of Workforce Services don’t give a true picture of the state’s current unemployment situation but do offer a hint at what the rate may be down the road. At the end of April, the jobless rate stood at 9.7 percent with about 155,800 people out of work. But that figure will surely jump as numbers come in for May and beyond due to the effects of the COVID 19 pandemic and subsequent layoffs and terminations.
The department said that Utah’s nonfarm payroll employment for April contracted by an estimated 7.1 percent, sidelining 110,900 workers since April 2019. Most job reductions are furloughs and considered temporary in nature. Utah’s current employment level registers 1,445,900.
By comparison, the national unemployment rate at the end of April was reported at 14.7 percent by the U.S. Bureau of Labor Statistics.
“The April survey offers Utah its first measured glimpse into the coronavirus’ economic impact,” said Mark Knold, chief economist at the Department of Workforce Services. “Utah’s strong economy preceding this pandemic offered more cushion against disruption than seen across the rest of the country, thus Utah’s more moderate setback. The current situation differs from other national downturns in that this is disaster-related and many separated workers are anticipating a return to work when circumstances allow. Other downturns generally feature permanent job separations.”
Utah’s private-sector employment contracted year-over-year by 8.1 percent with the loss of 105,500 positions. Two of the 10 private-sector major industry groups measured in the survey posted net job gains in April, those being construction (3,400 jobs) and information (500 jobs). The other eight industry groups posted employment declines. Those most impacted were leisure and hospitality services (down 66,700 jobs); trade, transportation and utilities (down 15,400 jobs) and education and health services, which lost 8,800 jobs.
May’s unemployment numbers will be released on June 19.
