Low jobless rate presents problem: unfilled positions

With the Utah jobless rate dropping again in May to 2.7 percent, some employers are finding it tough to fill positions — especially those in the entry-level and service industry categories.

According to Yvette Woodland of the Utah Department of Workforce Services (DWS), people holding out for their old jobs is contributing to the problem along with people choosing not to return to work because of augmented unemployment benefits.

“We have a really low unemployment rate in Utah. It’s always challenging to fill the jobs and find the talent when the unemployment rate is lower,” said Woodland. “I don’t think job seekers should sell themselves short. I think some [people] are holding out for what they did before. That might not have recovered as well as some of the other industries and so they do need to think about their transferable skills and what they have to offer.”

Woodland said it has been particularly difficult for companies looking for seasonal workers to fill jobs.

Utah’s 2.7 percent unemployment rate translates to 44,350 people looking for jobs and drawing jobless benefits. By comparison, the national rate dropped to 5.8 percent.

Utah’s nonfarm payroll employment for May increased an estimated 2.6 percent across the past 24 months, with the state’s economy both returning and adding a cumulative 39,800 jobs since May 2019. There are currently approximately1,595,700 people holding jobs in the state.

“Utah’s economy continues to add jobs as it responds to both population growth and post-pandemic business revitalization,” said Mark Knold, chief economist at DWF. “Utah’s low unemployment rate is currently presenting challenges, though. An aggressive hiring push is underway, largely in the leisure and hospitality segment. It is currently finding a less-than-equal response. Though Utah’s labor supply is not as fully employed as it was pre-COVID, workers are not returning at the same speed as jobs are becoming available. This is making for both a struggling and an opportunistic job market, depending upon one’s point of view.”

Utah’s May private-sector employment recorded a two-year expansion of 4 percent. Six of Utah’s 10 major private-sector industry groups posted net two-year job gains, led by professional and business services (16,900 jobs); trade, transportation and utilities (13,100 jobs); construction (10,400 jobs); and financial activities (9,500 jobs). The four industry groups with less employment than two years ago are leisure and hospitality services (down 8,800 jobs), natural resources and mining (down 1,300 jobs), information (down 1,300 jobs) and other services (down 200 jobs).