Showing posts with label Region--Wasatch Front South. Show all posts
Showing posts with label Region--Wasatch Front South. Show all posts

Tuesday, June 2, 2020

Unemployment Insurance Claims Data Shed Light on the Local Economic Impacts of COVID-19 Public Health Directives

By Lyndsey Stram, Regional Economist; Lecia Parks Langston, Senior Economist



“You have power over your mind — not outside events. Realize this, and you will find strength.” Marcus Aurelius

In the wake of the COVID-19 pandemic, businesses lost revenues and workers lost jobs. But because of the time it takes to collect and collate data, economists have been left without much information to quantify the economic impacts at the local level.

But there is one ray of data illumination. Claims for unemployment benefits are promptly available and provide information about a large cross section of the economy. This post will outline what light unemployment claims data sheds on the state of the Wasatch Front South Region’s economy.

While not all workers are protected by unemployment insurance laws, roughly 95% of jobs are covered. This makes claims data an exceptional source of information about the economy. Not included under unemployment insurance laws are most self-employed workers, about half of agricultural employment, unpaid family workers, railroad personnel (covered separately) and many nonprofit organizations (such as churches). Also, some out-of-work employees may not have worked a sufficient work history to qualify for unemployment insurance benefits, but may file anyway.

Fortunately, in this time of economic distress, the social safety nets of the unemployment insurance program, special national COVID-19 funding and social programs are working together to keep workers’ income and well-being stable.

Unemployment claimants and the unemployed; they aren’t the same

Also, keep in mind that, in addition to individuals drawing unemployment benefits, the unemployment rate includes those entering and re-entering the workforce and noncovered groups without current employment. This means the number of “unemployed” will be greater than the number of claimants. In “normal” times, only about 40% of the “unemployed” are claiming benefits.

The generally reported unemployment rate also has a work-search requirement. If you haven’t made any minimal attempts to find work, you aren’t counted as “unemployed.”

Watch this Space

While this analysis won’t be updated on a regular basis, new data will be added to the data visualization on a weekly basis allowing readers to check back for the latest information.

An Unprecedented Event

Not surprisingly, first-time claims for unemployment benefits soared in Utah and across the nation as the pandemic swept across the country. Week 12 (beginning March 16) marks the beginning of the unprecedented surge in claims. Claims in the Wasatch Front South Region peaked in week 14 and have been decreasing since. At that peak, 15,389 claims were filed between Salt Lake and Tooele Counties. By week 19, the claims are considerably lower while still remaining well above levels seen previously, even during the Great Recession of 2008-2009.

Prior to the COVID-19 pandemic, Salt Lake and Tooele Counties saw an average of 492 and 31 first-time claims per week. In the weeks since the restrictions, those numbers skyrocketed to 8,270 average weekly claims for Salt Lake and 387 in Tooele. This is an increase of 1,580% and 1,133% respectively.

Who took the hardest hit?

While Salt Lake has certainly had the lion’s share of the claims by number in the region, a much larger percent of Tooele’s covered employees have filed claims. Roughly 18% of the covered workforce has filed a claim in Tooele County, while 9% have in Salt Lake. As Salt Lake is the employment center for much of the state, it’s not surprising that a smaller portion has been affected here.

Tourism and COVID-19

In the Wasatch Front South Region, 20% of the post-COVID-19 initial claims filed corresponded to workers from the accommodations and food services industries. In addition, the true effect of the pandemic on this industry is masked by a large number of claims classified as industry “unknown” in the early days of the claims flood. Undoubtedly, many of these claims would rightfully be classified in accommodations/food services if the appropriate information were available.

Other high-claims industries include arts/entertainment/recreation, retail trade and healthcare and social assistance (reflecting the cessation of elective procedures and visits).

The Industry Flow

While most of the high-claims industries felt the pain of restrictions early on, other industries surged in later weeks. As the economic effects of other closures worked their way through the economy both manufacturing and transportation/warehousing proved relative latecomers to the layoffs in Salt Lake and Tooele.

The High and the Low

While accommodations and food services had the largest number of claims in Salt Lake and Tooele Counties, other industries have seen similar shares of claims, in percentage terms. Arts/entertainment/recreation had a first time claims rate of 20% of its covered workforce, equal to that of the accommodations/food services sector.

Sectors that had lower than average shares of claims include mining, construction, manufacturing, wholesale trade, utilities, information, finance and insurance, professional scientific and technical services, management, education and public administration.

County by County

Salt Lake County
• Prior to the COVID-19 pandemic, Salt Lake County averaged 492 first-time claims per week. During the pandemic, this increased 1,580% to 8,270 weekly claims.
• Salt Lake County has a diverse economy and some of the weaker hit sectors have served to buoy those hardest hit.
• New claims, as a percent of covered employment, measured at 9% — in the mid-range when compared to other Utah counties.
• Accommodations/food services and retail trade accounted for the largest shares of claims in Salt Lake County.

Tooele County
• Prior to the COVID-19 pandemic, there was an average of 31 claims per week. During the pandemic, this increased 1,133%, to 387 average weekly claims.
• New claims, as a percent of covered employment, measured at 18%. This is one of the highest rates in the state.
• Unknown industries accounted for 373 claims out of Tooele County, corresponding to a sizeable 13% of the claims in the county.
• Other large shares of the initial claims in Tooele come from administrative support/waste management/remediation, healthcare/social assistance, manufacturing and professional scientific and technical services.

Wednesday, March 29, 2017

Salt Lake Unemployment Rate Lowest Among Large Metropolitian Areas



In January 2017 the Salt Lake City metropolitan area, which includes Salt Lake and Tooele counties, had the lowest unemployment rate among large metropolitan areas in the United States at 3 percent. The Bureau of Labor Statistics performed this comparative analysis with large areas defined as those "with a 2010 Census population of 1 million or more." For more information and a map of the data visit the Bureau of Labor Statistics.

 


Thursday, July 28, 2016

The Infrastructure Labor Market - Salt Lake City MSA


By Mark Knold, Supervising Economist, and Cory Stahle, Regional Economist

The labor force is made up of people. People vary in every conceivable way. One person is artistic while another can only draw stick people. One person might be able to disassemble and reassemble a car engine while another might not know what an alternator is. We are different. We have different aptitudes and abilities.

Parallel to this variability, jobs are different. High levels of education do make it possible to work in high-skill occupations that return high incomes. But not everyone is cut out for higher education or has the means to obtain higher education. Therefore, they might end up in “lesser” or “unimportant” jobs.

But is that accurate? Are their job options inferior and unimportant? A recent Brookings Institution report brings to light a segment of the economy that is highly important yet is dependent upon the labor force that may not be built for, have the economic means, or desire to attain a college degree or higher.

Brookings identifies a niche they call the infrastructure economy. As Brookings notes, “Infrastructure helps facilitate the exchange of information, drive production, and deliver resources, spanning multiple sectors of the economy and serving as a foundation to long-term growth.” It goes further to note that “Infrastructure jobs depend on a steady stream of talent to construct, operate, design, and govern the country’s major physical assets.” (article continues below)

**Filter the viz below to see information on the infrastructure jobs in your area**


Tuesday, November 10, 2015

Either Side of the Mountain: Utah’s Two County “Tech-Highway”

By Cory Stahle, Regional Economist

A recently released report from real estate firm Cushman & Wakefield | Commerce, describes a record breaking construction trend occurring around the border of Salt Lake and Utah counties. In the past decade, the entirety of Salt Lake County and northern Utah County (900 plus square miles) have averaged less than one million square feet of new office construction annually. Over the past nine months this annual average has been dwarfed by a five square-mile area along I-15 between Draper and Lehi. With nearly two million square feet of new commercial construction projects underway, primarily in behalf of technology companies, the area is being coined by some as Utah’s “Tech-Highway.” A visual of the growth in construction is illustrated in the following image:

Image Property of: Cushman & Wakefield | Commerce
Construction is a driver and manifestation of the economic growth occurring in the Salt Lake City and Provo metropolitan areas. With a combined job growth rate of 4.2 percent from June 2014 to June 2015, Utah and Salt Lake counties are seeing significant increases in the number of jobs available. A significant portion of these job gains, in line with the Cushman report findings, are occurring in professional/technical service occupations and in construction. In comparing June 2015 to the previous year, nearly 14 percent of total job gains in Utah and Salt Lake counties were in professional/technical fields. Similarly, construction accounted for 10.8 percent of jobs in the two counties during the same period.

Wednesday, November 4, 2015

“What Does Agriculture in the Wasatch Front South Region Look Like?”

By Cory Stahle, Regional Economist


In 1791, President George Washington began correspondence with Arthur Young, an Englishman who desired to understand what agriculture in America looked like. In an attempt to address his questions, Washington administered a farm survey and computed the results for the populated East Coast. Supported by his findings, the President sent a series of letters to Young addressing issues of crop yields, livestock, labor cost, and labor productivity.

Washington’s survey provided a basis for agricultural measurement that continued for decades until 1840, when the first comprehensive Census of Agriculture was administered. Originally conducted as a part of the decennial population census, the Census of Agriculture eventually evolved to operate and release census data every five years, and does so to this day. Despite the variance in methodology and collection of agricultural data since Washington’s day, the fundamental question he sought to answer is still relevant.

In the spirit of Arthur Young, we may then ask the question, “What does the agricultural economy in the Wasatch Front South Region look like?”

The most recent Census of Agriculture, which utilizes data from 2012, illustrates the agricultural economy in the region. Beyond the scope of crop and livestock production, the Census of Agriculture contains massive amounts of data, ranging from internet access on farms to the number of pickup trucks used for agricultural purposes. A distillation of highlights from this census follows:

Wednesday, April 29, 2015

Wasatch Front South Economic Update

(Salt Lake and Tooele Counties)

Jim Robson, Regional Economist

The Wasatch Front South Service Area labor market ended 2014 with year-over employment growth in December of 2.2 percent. The region’s unemployment rate was a healthy 3.5 percent in the fourth quarter of 2014. Average employment growth in 2014 was 2.4 percent above the level for 2013. There was job growth across all major industrial groups with two exceptions, mining and manufacturing employment. In 2014, the region marked its fourth complete year of economic expansion and labor market improvement since the end of the great recession.

For Salt Lake and Tooele Counties, the continuing healthy job growth and labor market will characterize economic conditions during 2015, with new employment expected to increase about 2.7 percent for the year, an additional 17,700 positions. Total 2015 payroll employment will average about 672,100 jobs in this region. Substantial job increases should come from professional/scientific/technical services, administrative support, trade, financial activities and education.

The improving labor market brought down the unemployment rate to average 3.7 percent in 2014. In the first quarter of 2015 unemployment averaged 3.3 percent and will likely continue to range between 3.0 and 3.4 percent through 2015.

Salt Lake County
* Year-over job increases continue across 15 of 19 industrial sectors with overall nonfarm payroll employment increasing by 2.2 percent from December 2013 to December 2014. The net new jobs from the past year added to the four-plus years of recovery since the employment trough of the recent recession in Salt Lake County.

* Average employment in 2013 was 624320 and 639,395 in 2014, an increase of 15,076 jobs or 2.4 percent. There were 656,221 nonfarm payroll jobs reported by employers in December 2014, which includes the temporary employment surge of the holiday season.

* From December 2013 to December 2014, the most new jobs are being created in professional/scientific/technical services, construction, trade, finance/insurance and food services.

* Within professional/scientific/technical services, 3,265 new job opportunities were concentrated in computer systems design, accounting/bookkeeping, management/technical consulting, architectural and engineering services.

* The 2,279 new construction jobs were spread across commercial, residential, and industrial activities. Residential building permits increased by 16 percent to 6,066, the highest number of permits since 2006.

* Four industries shed jobs from December 2013 to December 2014. Transportation/warehousing declined by 512 positions with most reductions found among truck and air transportation.

* Mining employment was down by about 156 jobs with the effects of declining oil prices being manifest in oil and gas support activities. Manufacturing and information had reductions of 89 and 85 jobs respectively.

* In the fourth quarter of 2014, there was a net increase of 3.5 percent in firms and worksites within Salt Lake County. This increase of 1,381 units brought the total count of firms and worksites to 41,156.

* The seasonally adjusted unemployment rate in Salt Lake County has lessened from 3.9 percent in March 2014 to 3.2 percent in March 2015.  Since March 2014, the number of Salt Lake County residents that are unemployed has declined from about 22,150 to 18,900. Initial claims for unemployment benefits are at their lowest level in five years.

* The stabilization, improvement and expansion in the Salt Lake County labor market since mid-year 2010 have been reflected in the gross taxable sales figures. For 19 consecutive quarters, starting in the second quarter of 2010 and going through the fourth quarter of 2014, Salt Lake County’s year-over change in sales tax collections has been positive. The fourth quarter 2014 year-over taxable sales were up six percent.


Tooele County
* Tooele County’s own job recession continued through the end of 2014 with year-over job losses of 297 for the 12 months ending in December 2014. Payroll employment within the county peaked in mid-2011 and has been down on a year-over comparative basis since then.

* Overall, nonfarm payroll employment totaled 14,870 in December 2014. This is the lowest job count for the month of December since 2005.

* The three largest job reductions from December 2013 to December 2014 occurred in the waste management and remediation services, construction, and the federal government. Many of these losses stem from the direct and indirect effects of the Deseret Chemical Depot closure which was completed by the end of summer of 2014.

* The three industries showing the largest December 2014 year-over employment increases include transportation/warehousing, healthcare/social services, and arts/entertainment/recreation services.

* In 2013, average annual nonfarm payroll Jobs totaled 15,419 in Tooele County. For 2014, there were 14,944 jobs, a reduction of 475 or a decline in payroll positions of 3.1 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 job market to return to the plus side of the ledger with some positive overall job additions as year-over employment growth should resume in the spring.

* In the fourth quarter 2014, there was a net increase of 2.4 percent in firms and worksites within Tooele County. This increase of 25 units brought the total count of firms and worksites to 1,056. This increase in payroll firms and worksites is another sign that the economic climate is improving and that new job growth will be returning.

* As part of the greater Salt Lake City Metropolitan Area, Tooele County residents have access to the Salt Lake County job market. Salt Lake’s current relative strength provides support to Tooele County residents.

* The unemployment rate was estimated to be 5 percent in March 2014, improving to a rate of 4 percent in March 2015. There are about 1,170 unemployed Tooele County Residents looking for work in the spring of 2015.

* During the first quarter of 2015, initial unemployment insurance claims averaged the lowest level in Tooele County for any first quarter since 2006. This indicates that the Tooele County labor market has returned to non-recessionary levels of job separations.

* Residential building permits increased by 27.4 percent to 363, the highest number of permits since 2007. The overall value of all permited construction activity increased in 2014 by 16.6 percent over the previous year totaling $142.5 million.

* Gross taxable sales increased by 4.6 percent in the fourth quarter 2014 compared to fourth quarter 2013.