Challenges are returning - good news for state's economy rebound

Some of Utah’s economic challenges are returning — and that’s a good thing, as it signals that the state is on track to recovery from the pandemic-driven recession. So said the Salt Lake Chamber’s Roadmap to Recovery Coalition as it updated its Roadmap to Recovery Dashboard for May.

The chamber partners with the Kem C. Gardner Policy Institute at the University of Utah to publish the tool, which helps business leaders know where Utah sits in the overall recovery. The dashboard tracks the state’s path to recovery and provides context for decision-makers.

“We have now rebounded with our job gains reaching a year-over growth threshold and unemployment flashing a signal that we are reaching peak employment,” said Derek Miller, president and CEO of the Salt Lake Chamber and Downtown Alliance. “This envious position must not be taken for granted, nor forgotten on how we arrived here working together. The previous challenges of workforce development and securing top talent are returning with this accelerating economy. We must now double down on efforts to develop our employees, shore up the innovation gains during the pandemic and ensure that all Utahns are included in this recovery.”

Three essential benchmarks from the May 2021 Roadmap to Recovery Dashboard include:

1. Unemployment rate below 3 percent. For the first time since the pandemic began, Utah’s unemployment rate dropped below 3 percent. Utah’s March unemployment rate of 2.9 percent was the lowest in the nation, tied with several other states. This marks the seventh consecutive month of decline.

2. Year-over-year job growth. Utah achieved a slight job growth of 0.9 percent in May. Moving forward, job growth will be compared to early-pandemic months with large job losses. Job growth will likely be high as it is compared to these months with large losses.

3. Consumer confidence. Utah’s March consumer confidence of 96.4 points was the highest since the measure’s inception in October 2020. Utah’s consumer confidence exceeds the nation’s (84.9) by more than 10 points.

The dashboard is updated consistently, providing essential insights, tracking 10 timely and leading measures and sharing pertinent indicators since the start of the pandemic. This will give leaders the backdrop for them to make informed decisions.

“Utah’s job growth and low unemployment are key factors in moving our economy back to stable ground. Consumer and executive confidence are both cresting toward highs that show Utahns are ready to fully re-engage in commerce,” said Natalie Gochnour, director of the Kem C. Gardner Policy Institute. “As our economy continues to recover, women in the workforce and hard-hit sectors will continue to require focus.”

The Roadmap to Recovery Coalition is a business-led coalition, supported by the Salt Lake Chamber and focused on implementing and promoting economic recovery. The coalition is co-chaired by Mikelle Moore, senior vice president and chief community health officer at Intermountain Healthcare, and Scott Parson, CEO of Staker Parson Materials & Construction. Investors of the coalition include Mountain America Credit Union, WCF Insurance, Clark and Christine Ivory Foundation, Deseret Management Corp., Intermountain Healthcare, Staker Parson Materials & Construction and Rio Tinto Kennecott.