Salt Lake County Economic Update

The Wasatch Front South Service Area labor market began 2014 with healthy year-over employment growth of 2.7 percent and then slowed somewhat in the late spring and early summer with the growth rate cooling to about 2.3 percent. This reduction in the job growth rate occurred as the goods-producing industries of mining, manufacturing and construction had basically the same level of employment as a year earlier. The goods producing industries account for 14 percent of payroll jobs in Salt Lake and Tooele counties.

The region’s unemployment rate was around 3.5 percent by mid-year and drifted down to 3.3 percent by September. Last year Wasatch Front South unemployment averaged 4.2 percent.

• Year-over job increases continue across most major industry sectors with overall nonfarm payroll employment growth of 2.6 percent from June 2013 to June 2014. Total jobs in June 2014 were 640,691, an increase of 16,159 jobs in the last 12 months.
• The most new jobs are being created in state government, professional/scientific/technical services and administrative support services.
• The state government increase of 3,469 jobs, growing by 8.4 percent from a year earlier, is somewhat surprising at first glance. In fact, most state government agencies show no significant job growth or even have small reductions. The growth in state government was found in two areas — higher education and the University of Utah Hospital system.
• In Salt Lake County, state colleges, universities and technical schools added 2,650 jobs and the University Hospital and clinics added 1,047 jobs. Together, all other state government functions had a net loss of 228 positions in the county.
• In the private sector, within professional/scientific/technical services a substantial number of the job opportunities are in accounting/bookkeeping, computer systems design, architectural, engineering, advertising, scientific research and management/technical consulting. Within the administrative support services, most of the new jobs created were in temporary help services and telephone call centers.
• Three industries shed less than 30 jobs each from June 2013 to June 2014 — utilities, manufacturing and arts/entertainment/recreation.
• Mining employment was down by about 422 jobs, with much of the decline related to the major landslide in April 2013 at the Bingham Canyon Kennecott Copper Mine and some reduced need for construction-related mining activities.
• Construction employment grew by a modest 637 jobs or 2 percent. Residential construction activities added employment (+398 positions) and all other construction activities increase employment by 239.
• The seasonally adjusted unemployment rate in Salt Lake County has continued to come down in 2014. By September there were about 19,300 unemployed. The unemployment rate was about 3.3 percent compared to 4 percent at the same time last year.
• The expansion in the Salt Lake County economy since the middle of 2010 continued to be reflected in the gross taxable sales figures. Second quarter 2014 year-over taxable sales increase by 3.9 percent, much improved over the first quarter 2014 increase of just 0.7 percent above first quarter 2013. 

 Overall for the Wasatch Front South (Salt Lake and Tooele Counties), continuing healthy job growth and improving labor market characterizes economic conditions through 2014. Economic expansion brought down the unemployment rate to about 3.3 percent by the end of summer 2014. The jobless rate will likely continue to range between 3.2 and 3.5 percent through the remainder of 2014.

The 2014 job outlook in the Wasatch Front South area is expected to show overall employment growth of around 2.6 percent, adding an additional 15,500 to 17,500 jobs. Substantial job increases should come from professional/scientific/technical services, state higher education, administrative support and food services. Looking forward into 2015, job growth will likely continue between 2.3 to 2.8 percent in the region, with Tooele County once again contributing to positive job growth.