What economic decline? Jobless rate holds at 2.3%

Despite financial data pointing to a slowing economy, Utah’s unemployment rate stayed put at 2.3 percent in May, while the national rate ticked up three-tenths of a percentage point to 3.7 percent from April. The May number means about 42,000 Utahns are still jobless, according to data released by the Utah Department of Workforce Services (DWS). Utah’s rate has changed only slightly since beginning the year at 2.4 percent.

The department also reported that{mprestriction ids="1,3"} Utah’s nonfarm payroll employment for May increased an estimated 2.9 percent in the past year, with the state’s economy adding a cumulative 48,900 jobs over 12 months. The report said 1,727,100 people currently hold jobs in Utah.

“Springtime is here, and the Utah economy is ready for its yearly injection of new labor into the economy,” said Mark Knold, DWS chief economist. “Spring graduation is the most prolific time of the year for new labor to enter the Utah economy. Whether from high school graduation or college, young working-age people approach the labor market — some for the first time, some for a more expanded and full-time role. This is the lifeblood for the Utah economy. Its expansion and vibrancy are driven by the large amount of young labor that ages in each year.”

Utah’s May private-sector employment recorded a year-over-year expansion of 2.9 percent with an increase of 41,500 jobs, DWS said. Eight of 10 major private-sector industry groups posted net year-over-year job gains, led by leisure and hospitality services (up 16,100 jobs), education and health services (up 8,500 jobs), professional/business services (up 6,600 jobs) and construction (up 4,700 jobs). The two sectors with a year-over-year job loss are financial activities, which lost 1,400 jobs, and the trade/transportation/utilities sector, down 1,000 jobs.

Additional employment data tables and analysis, including county unemployment rates, can be accessed at https://jobs.utah.gov/wi/update/index.html.{/mprestriction}