Articles
9 February 2012

Utah's Workforce Facts

by Carolyn Campbell

09 February 2012—

 

 

Utah's Workforce Facts 

 

HIGHLIGHTS
Utah’s job growth was 5.2 percent in 2006, second in the U.S.
Utah is a right-to-work state, with only about 6 percent of employees affiliated with unions.
Intermountain Health Care is Utah’s largest private employer. 
Utah ranks fourth nationally for the overall health of its work force, according to the United Health Foundation.
Utah’s unemployment rate for March 2006 was 2.4 percent, compared to the national rate of 4.4 percent.
 
UTAH’S DYNAMIC ECONOMY IS AMONG THE NATION’S LEADERS FOR GENERATING JOB GROWTH. The state’s 2006 employment growth of 5.2 percent was second highest in the U.S. and nearly four times the national growth rate of 1.4 percent. (See also the Quality of Life profile in this volume.)
 
Two primary advantages for employers in Utah are the quality of the state’s growing workforce and the dynamic nature of Utah’s economy. Leaders of numerous companies that have relocated headquarters or other major operations to Utah in recent years have commonly reported productivity increases of 15 to 30 percent, which they attribute to the work ethic, qualifications and good health of the state’s populace.
 
Utah has one of the healthiest populations in the U.S. According to recent health statistics from the U.S. Department of Health and Human Services, Utah has the fourth highest life expectancy in the nation. The most recent edition (2005) of the United Health Foundation’s America’s Health Rankings found Utah to be the overall fourth healthiest state in the U.S., with the country’s lowest prevalence of smoking, and the lowest incidence of cancer-related deaths. Utahns enjoy the third highest life expectancy in the nation, at 78.6 years, according to the U.S. Census Bureau.
 
The technology savvy of Utah’s workforce is evident in the fact that the state ranks third in the nation in the Kauffman Foundation’s 2007 State New Economy Index. A 2005 U.S. Census Bureau study found Utah to be the number 1 state in the U.S. for PC Penetration, with a personal computer in 74.1 percent of all Utah households.
 
Utah enjoys a high literacy rate and ranks second in the nation in the percentage of students that finish high school. (See the Education profile in this book.) Utah’s poverty rate of 9.2 percent in 2005 was the lowest in the Mountain West, and tied for sixth lowest in the nation.
 
The state’s workforce is also one of the most multilingual in the nation. The exposure of Utah’s populace to many languages and cultures, with many Utahns having lived and worked abroad, greatly enhances the readiness and ability of Utah-based companies and divisions to operate in an increasingly global economy. According to the Utah Governor’s Office of Economic Development, more than 50 languages are taught at Utah universities, more than 130 languages are spoken in the state. Approximately 80 percent of students at Brigham Young University are multilingual.
 
Employers in Utah can anticipate a young, growing, indigenous labor supply for the foreseeable future. (See the Population profile in this Facts Book.) Utah has the highest birthrate and youngest median age in the nation.
 
Business Environment and Employment Characteristics
Utah’s tremendous job growth is fostered by an exceptional business environment. The Kauffman Foundation’s 2007 State New Economy Index named Utah first in the nation for Economic Dynamism, second for Inventor Patents, fourth for Fastest Growing Firms and Fifth for Venture Capital. Forbes Magazine named Utah fourth in its 2006“Best State for Business” rankings. In addition, Utah has also been ranked number 5 on the list of “America’s Top Ten Pro-Business States” in the Keeping Jobs in America: Pollina Corporate Top 10 Pro-Business States 2007, which examines 29 factors relative to a state’s business-friendliness.
 
The Utah Department of Workforce Services estimates that for 2006, the total non-agricultural wages in the state increased 10.9 percent to $41.8 billion, total personal income increased 9.5 percent to $74.4 billion, and the average wage increased 5.4 percent to $34,600. The Utah average wage ranks 35th nationally, reflecting the fact that the state has the nation’s youngest workforce. The average Utah household income of $54,813 (measured by the U.S. Census Bureau for 2003-2005) is the tenth highest in the U.S. The national average is $46,326.
 
According to U.S. Bureau of Labor Statistics, Utah’s unemployment was 2.4 percent in March 2007, second lowest among U.S. states. The 2006 annual unemployment rate of 3.3 percent was also the nation’s second lowest. The national rate was 4.4 percent. From March 2006 to March 2007, the number of Utah jobs increased from 1,189,200 to 1,244,100, an increase of 54,900. 
 
Utah’s ongoing job growth boom is being driven by growth in every major industry sector of the economy. According to the Utah Department of Workforce Services (DWS), the greatest growth came from construction, which added an estimated 14,800 employees for an 18.1 percent gain. Professional and business services added 10,600 jobs, a 7.2 percent gain. Trade, transportation and utilities added 8,900 employees, a 3.9 percent gain. Education and health services added 5,600 jobs, a 4.4 percent gain. The state’s manufacturing sector added 5,500 employees, up 5 percent.  Financial activity added 4,100 new jobs, a 6.1 percent gain. Leisure and hospitality also added 4,100 jobs, an increase of 3.9 percent. Government added 2,600 jobs, a 1.3 percent gain. Information and the “other services” category each added 1,000 jobs, just over a 3 percent gain for both categories.
 
Overall, the Utah industry category with the largest number of workers was trade, transportation and utilities, employing approximately 234,800 workers (19.4 percent of the workforce) in 2006. This category was followed by government (204,900: 17.0 percent); professional and business ser­vices (157,300: 13.0 percent); education and health (134,200: 11.1 percent); manufacturing (123,000: 10.7 percent); and leisure and hospitality (108,300: 9.5 percent).
 
RIGHT-TO-WORK
Utah is one of 22 U.S. states operating under a right-to-work law. Under the Utah provision, no individual seeking or holding a job in the state may be forced to join or pay dues to a labor union, nor conversely prevented from joining a union and/or engaging in collective bargaining. Union membership is low in Utah, with only about 6 percent of manufacturing employees affiliating with unions, compared to a national average of about 12 percent.
 
UTAH’S LARGEST EMPLOYERS
The list of Utah’s ten largest employers has remained fairly consistent in recent years. Two organizations in the state employ more than 20,000 workers each: Intermountain Health Care, a statewide network of hospitals and clinics; and the State of Utah. Utah’s two largest universities—the University of Utah (including the University Hospital) and Brigham Young University—are the next largest employers, with between 15,000 and 19,999 employees. Wal-Mart, with its growing number of Utah stores, is in the 10,000-to-14,999 employee category as the fifth largest employer. Hill Air Force Base, a military installation in Ogden, employs between 10,000 and 14,999, down from past years in which it exceeded 20,000 workers. Two major school districts, Granite and Jordan, have employees numbering between 7,000 and 9,999. Davis County School District is ninth largest employer, followed by Utah State University; both employ between 5,000 and 6,999 Utah workers.
 
UTAH’S HIGHEST PAYING INDUSTRY SECTORS
In 2005, the mining sector continued as Utah’s average wage leader, with a monthly average of $4,778, followed by the information sector (which includes information technology, libraries, and print and broadcast media) at $3,752/mo; financial activity (banking, insurance and other financial services), $3,574/mo; manufacturing, $3,312/mo; and professional and business services (a broad group category ranging from engineering services and testing labs to research firms, call centers and waste management) at $3,107/mo.
 
In 2005, average monthly wages increased in every industry sector, by an overall average of 3.6 percent, with greater increases anticipated by DWS for 2006.
 
General Sources: State of Utah 2007 Economic Report to the Governor; http://www.edcutah.org.
 
 
 


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