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.

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.

Tooele 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.

• Tooele County’s own job recession continues, with year-over job losses of 563 for the 12 months ending in June 2014.
• The three largest job reductions occurred in administrative support/waste management services decreasing by 381 jobs, the federal government shedding 167 jobs and professional/technical and headquarters declining by 62. Many of these losses stem from the direct and indirect effects of the Deseret Chemical Depot closure which is now complete.
• The three industries showing the largest June 2014 year-over employment increases include construction (126), health care/social service (46) and transportation/warehousing (42).
• Overall, nonfarm payroll employment totaled 15,094 in June 2014. This is the lowest job count for the month of June since 2006.
• In June 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 1,250 unemployed Tooele County Residents looking for work and a jobless rate of 4.2 percent.
• Gross taxable sales declined by 2.9 percent in the first quarter 2014 compared to first quarter 2013. Second quarter 2014 sales were down again by 1.1 percent on a year over basis. This is the seventh consecutive quarter with year-over reductions. 

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.

Local home prices stay on upward climb

Home prices in the Salt Lake City area continue to rise, according to the latest report by a leading real estate analytic firm. Local home prices increased by 5.4 percent in August compared to August of last year, as reported in the CoreLogic Home Price Index (HPI).

When prices for distressed sales are excluded, those prices increased by 6.2 percent month-to-month, according to the report.

Home prices nationwide, including distressed sales, increased 6.4 percent in the same time period. This change represents 30 months of consecutive year-over-year increases in home prices nationally. Utah has seen similar home price increases during the 30-month national appreciation.

Despite the steady rate of increase in home prices, current selling rates are still 8.6 percent below peak prices recorded before the Great Recession. The Enterprise

New County Pages

See our new County Pages, each with their own URL for easy bookmarking. Find labor market information that has been divided into counties and regions for a quick look at each area.

Also find a new look for the Current Economic Snapshots (Salt Lake and Tooele). These are economic snapshots are a two-page look at the current information for labor force, sales, building and unemployment insurance for each county in Utah, and are updated monthly after the Employment Situation.

These can be accessed on the Utah Economic Data page or on the Labor Market page under the "County Snapshots" link.

2012 sales taxes up 7 percent in Salt Lake County

With relatively strong holiday purchasing to cap the year, Salt Lake County finished 2012 with sales tax revenues that exceeded 2011 totals by almost 7 percent.

And there’s more good news, county financial officer Lance Brown told the County Council on Tuesday. Salt Lake had employment growth of 2.9 percent last year, better than four other Western cities — Phoenix and Denver (both 2.5 percent), Boise (2.1 percent) and Los Angeles (1.4 percent).

The county option tax on retail sales, the biggest individual source of sales tax revenue for the county, amounted to $47.7 million in 2012. Salt Lake Tribune

Homeowners search for ideas at Home and Garden Show

The Salt Lake Tribune’s annual Spring Home and Garden Festival opened its four-day run Thursday at the South Towne Expo Center in Sandy. The show draws an estimated 35,000 people each year. If there is a new trend in the show, it might be "green products." Companies selling everything from organic soil to xeriscaping to solar panels seemed to be on almost every aisle. One thing that always dazzles is the variety of home and garden products, and services, being offered. Salt Lake Tribune