Solid Growth and Low Unemployment
The Wasatch Front South Service Area labor market cooled from a year-over employment growth of 2.7 percent at the beginning of 2014, slowing in the spring and summer to a growth rate of about 2.1 percent. The region’s unemployment rate was around 3.5 percent by mid-year 2014 and drifted down to 3.3 percent by the end of the year. In 2013, Wasatch Front South unemployment averaged 4.2 percent. Economic expansion has brought down the unemployment rate low enough so that many employers are reporting some difficulty in recruiting the workers they need. This may put some upward pressure on wages in the coming year.
Overall for the Wasatch Front South (Salt Lake and Tooele Counties), continuing healthy job growth and an improved labor market characterizes economic conditions through 2014 and into 2015. The average 2014 job count in the Wasatch Front South area showed estimated employment growth of around 2.2 percent, adding an additional 13,800 jobs. Substantial job increases were added from professional/scientific/technical services, state higher education, administrative support, accommodations/food services and finance/insurance. Looking forward into 2015, job growth will likely continue between 2.2 to 2.5 percent in the region, with Tooele County once again contributing to positive job growth.
Tooele County
• Tooele County’s own job recession continued during 2014. The county experienced year-over job losses of 334 for the 12 months ending in September 2014.
• The three largest job reductions occurred in administrative support/waste management services decreasing by 272 jobs, the federal government shedding 76 jobs and professional/technical declining by 84. Many of these losses stem from the direct and indirect effects of the Deseret Chemical Depot closure which was completed in the summer of 2014.
• The four industries showing the largest September 2014 year-over employment increases include health care/social service (59), transportation/warehousing (42), local government (38) and information (27).
• Overall, nonfarm payroll employment totaled 15,094 in September 2014. This is the lowest job count for the month of September since 2006.
• During the fourth quarter of 2014, initial unemployment insurance claims averaged the lowest level in Tooele County for any fourth quarter since 2006. This indicates that the Tooele County labor market has returned to non-recessionary levels of job separations.
• For the year ending in September 2014 there was a net increase of 2.9 percent in firms and worksites within Tooele County. This increase of 30 units brought the total count of firms and worksites to 1,048. This increase in payroll firms and worksites is another sign that the economic climate is improving and that new job growth will be returning.
• In September of 2012, the unemployment rate was around 5.8 percent, improving throughout 2013 to record a rate of 5.2 percent in September 2013. As of September 2014, there are about 1,206 unemployed Tooele County Residents looking for work and a jobless rate of 4.1 percent. By December of 2014 the jobless rate had receded to 3.8 percent.
• In 2013 average annual nonfarm payroll Jobs totaled 15,419 in Tooele County. For 2014 there were an estimated 14,984, a reduction of 435 or a decline in payroll positions of 2.8 percent. After accounting for seasonal variations, the level of jobs in the county stabilized in 2014. Therefore, the outlook for 2015 is for the Tooele County labor market to return to the plus side of the ledger with some positive overall job additions.
