Utah jobless rate holds in spite of surge in COVID

Despite rumored layoffs due to the surge in COVID-19 cases spurred by the delta variant, Utah’s unemployment rate held steady in August at 2.6 percent, still among the lowest in the nation. The Utah rate means approximately 42,600 remain jobless. The national unemployment rate ended August at 5.2 percent.

Utah’s nonfarm payroll employment increased an estimated 3.8 percent over the past two years, according to figures released by the Utah Department of Workforce Services (DWS), with the state’s economy adding a cumulative 55,700 jobs since August 2019. That means that about 1,614,800 Utahns currently hold jobs.

“Utah’s recent three-month employment surge peaked last month,” said Mark Knold, chief economist at DWS. “August’s two-year growth rate of 3.8 percent is down from July’s 4.2 percent. This moderation parallels a slight national economic slowing. With the delta variant ramping up, consumer spending has lessened. It is still robust but pulling back a bit. Such a reaction is not unusual given the variant’s unknowns. The economic slowing, however, should not develop into an economy breaker.”

Utah’s August private-sector employment recorded a two-year expansion of 4.7 percent. Six of Utah’s 10 major private-sector industry groups posted net two-year job gains, led by the professional and business services (up 20,200 jobs); trade, transportation and utilities (up 16,800 jobs); construction (up 11,300 jobs); and manufacturing (up 8,900 jobs). The four industry groups showing a loss of jobs in the past two years are leisure and hospitality services (down 2,400 jobs), natural resources and mining (down 1,100 jobs), information (down 800 jobs) and other services (down 400 jobs).