Articles
8 February 2012

Utah’s Employment Summary: November 2009

by PR or News Wire

08 February 2012—

 Utah’s nonfarm wage and salaried job count for November 2009, as generated by the United States Bureau of Labor Statistics (BLS), contracted by 3.1 percent, a continued improvement against October’s unrevised 3.3 percent decline. Approximately 38,800 jobs have been removed from the Utah economy over the past 12 months, lowering total wage and salary employment to 1,210,424.

 

Utah’s other primary indicator of current labor market conditions also generated by BLS, the seasonally adjusted unemployment rate, declined this month to 6.3 percent in November. Last November, the state’s rate was 3.8 percent, a 2.5 percentage-point increase over the past 12 months. October’s rate remained unrevised at 6.5 percent. Approximately 86,200 Utahns were considered unemployed in November 2009, compared against 52,600 last November, an increase of 33,600 unemployed workers. The United States unemployment rate fell two-tenths to 10.0 percent for November.

 

Job losses remain the theme of Utah’s employment picture, but there is a noticeable retreating in the volume of loss. All of the industries with job contractions are recording losses manifestly lower than the corresponding losses those industries recorded just two months ago. August appears to have been the low point to Utah’s job contraction within this recession. This is suggested by both the not seasonally adjusted and seasonally adjusted employment numbers (seasonally adjusted is available at the U.S. Bureau of Labor Statistics website:

http://stats.bls.gov/sae/sm_mrs.htm ). If these numbers hold through upcoming revisions, then Utah’s job contraction will have spanned 18 consecutive months.

 

Eight of Utah’s 11 major industry groups recorded job losses across the past 12 months.

Improvements are emerging, but job levels are still significantly below the level of 12 months ago. The current employment survey suggests job hiring is re-emerging in Utah, although at a very modest pace. New unemployment insurance claims remain high, so the amount of ongoing layoffs are still of consequence.

 

Construction still shows the biggest job decline of a year ago—down 11,900. Construction is the ndustry that has been in this downturn the longest. Over the past two years, this industry has shed 29,600 jobs. Indications are that the job losses in the residential construction sector have bottomed out, but nonresidential job losses will be the negative influence going forward.

 

Manufacturing continued to record employment levels significantly below the November 2008 level—down 10,700 jobs, or -8.7 percent. Job losses are across the board in durable goods production (products with a shelf life of three years or more). Large year-over losses are observed in furniture, sporting goods, transportation equipment, fabricated metals, and machinery. Nondurable goods show mostly job losses—heavy in wood products, clay and bricks, and printing—yet four areas show year-over gains. They include food, beverages, apparel, and petroleum products. Those four account for 16 percent of Utah’s manufacturing base.

 

Retail trade employment is only 300 jobs lower than last November. Employment declines were concentrated in motor vehicles and parts, building materials, home furnishings, and sporting goods. Employment in transportation and warehousing is down 2,100 positions over the past year.

 

Financial activities employment lost 1,800 jobs over the past 12 months. This can be traced to activities related to credit intermediation, securities and commodity contractors, insurance carriers, and real estate activities.

 

Employment losses in the professional and business services industry are still substantial— 8,200 jobs lower than last November’s total. Temporary help services is the area oflargest job loss in this sector over the past year, and remains as such. But there are indications that employment levels in this area have turned a corner and are picking up once again. Over the past two years, over 8,000 temporary help jobs have been shed. Other areas in the professional and business services industry with substantial year-over job losses include services to buildings, architecture and engineering, business support, management of companies, and computer systems design.

 

Healthcare continues to be the strongest area for employment additions. Over the past year, this industry has added 7,400 new jobs to its Utah payrolls. Since the start of the recession, healthcare has added over 12,000 new jobs in Utah.

 

The leisure and hospitality group has been exposed during this recession. With year-over losses of 7,700 jobs, its 7.0-percent decline proportionally makes it the third most impacted industry in Utah. Restaurants have lost the most jobs in this sector, yet there are also losses in the accommodation industry as well. This sector’s loss is particularly high this month, as the ski season did not get off to a good November start like it did last year, since large winter storms did not blanket Utah’s ski resorts in November.

 

Government employment has expanded during this recession. Federal government employment has risen by 600 positions over the past 12 months. Local government payrolls have increased by 2,500. Only state government payrolls have contracted over the past 12 months—down 100 positions.

 

Utah Labor Market Indicators

 

November 2009

 

Employment % Change:  -3.1%

Employment # Change:   -38,800

Unemployment Rate:  6.3%

 

United States

 

Employment Change: -3.4%

Unemployment Rate:  10.0%


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