SALT LAKE CITY — Three private sector industry groups drove the Beehive State’s 2.5% job growth rate over the past year, accounting for 33,400 of the nearly 43,000 jobs added to the state’s economy.
The Utah Department of Workforce Services May employment report shows that education and health services experienced the largest year-over-year growth with 18,000 positions, followed by 7,800 jobs in construction and 3,200 in manufacturing.
Compared to the national picture, Utahns are faring better when it comes to employment. The state’s unemployment rate sits at 3.2%, with the U.S. rate at 4.2%.
Still, there are some signs that things might be starting to slow down.
“While this month’s jobs numbers are strong and labor market conditions remain robust, the state’s labor market is seeing signs of a cooling trend,” said Ben Crabb, Utah Department of Workforce Services’ chief economist. “Job openings are trending downward, having fallen by about 15% over the year.”
Additionally, the rate at which workers are quitting their jobs — something Crabb said indicates the confidence they have in finding new, better jobs — was down by about 10% to 15% over the past year.
This reflects “a hesitance” among workers to try switching jobs.
Unemployed workers are also finding that it’s taking longer to find suitable reemployment, with the median duration of unemployment up from 6.6 weeks last year to 7.7 weeks in the latest data.
Despite some of these trends, Crabb said they’re not exactly “flashing red warning signs” for the state’s labor market.
“Going into the summer, the state’s economy is exhibiting health and expansion across industries. The increase in the private sector hiring rate, in particular, is an encouraging sign that employers in the state are expecting continued, strong demand for their goods and services going forward,” Crabb said.
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