Economist: Easing oil prices were a factor, and "all of this spells a good start to the new year"
By Bob Mims
The Salt Lake Tribune
Salt Lake Tribune

Utah's unemployment rate fell to 4.6 percent last month, a 1.1 percentage point decline from January 2004.

Mark Knold, Utah Department of Workforce Services senior economist, reported Tuesday that 54,500 Utahns were without jobs in January, a sharp decline from 68,100 a year earlier. Even better: Utah employers added 35,500 jobs last month compared with January 2004 for a job-growth rate of 3.3 percent.

The increase of new jobs will only help our local real estate market. As more and more business come from out of state, more people will want to move hear which in turn helps our market grow.'Scott Robbins…Greatscottutah.com'

Knold speculated that easing oil prices were a factor in improved hiring levels in every sector of the economy.

"After a bit of an energy-price-run-up pause at the end of 2004, current lower energy prices have released that negative psychology, and businesses seem to have responded quickly," he said. "Construction is really doing well right now [and] even the manufacturing sector is getting into the act. It has added over 4,000 new jobs over the past year."

Indeed, all industrial sectors have added new jobs over the past year. Six of 11 sectors added more than 4,000 new jobs each.

Knold's conclusion: "All of this spells a good start to the new year."

Nationally, more than 2.2 million new jobs were added since January 2004, a 1.7 percent growth rate.

"We are seeing the strongest job growth in Utah in six years, if you look at the last 12 months [for comparison]," said Jeff Thredgold, an economic consultant to Zions Bank. "If you want to talk about a diversified, well-balanced economy, that appears to be where we are going now."

In Utah, the most new jobs - 6,200 - have developed in the trade, transportation, and utilities sector, with more than half in the retail trade sector. The trucking industry also is expanding, adding over 700 new jobs. A recent job vacancy survey released by the Department of Workforce Services shows that truck drivers are in demand across the state.

The professional and business services sector added 5,100 year-over jobs, construction 5,000.

Construction rode high into the new year thanks to low mortgage interest rates that allowed thousands of Utahns to buy their first homes.

Other home buyers found the favorable financing a means to move up to better digs, Thredgold said.

"The housing market continues to do well, tied to extraordinarily attractive mortgage rates," he said.

Abundant and early snowfall also boosted the ski industry to a strong start this year. Knold said the leisure and hospitality industry is seeing year-over employment gains of around 4,700 jobs.

Education and health services have added 4,500 year-over positions, though the health care sector faces a shortage of nurses statewide.

Manufacturing has added 4,400 new jobs over the past year, while government - primarily the education sector - has added 2,300 slots.
bmims@sltrib.com