SALT LAKE CITY — The Kem C. Gardner Policy Institute presented the 38th Economic Report to the Governor to Gov. Spencer Cox at the 2026 Economic Outlook & Public Policy Summit. The report reveals that Utah’s economy demonstrated remarkable strength and continued growth in 2025, navigating a complex national landscape. The report projects a path of moderate expansion for the state throughout 2026, building on its solid foundation.
“The past year underscored Utah’s exceptional economic resilience, despite headwinds at the national level,” said Phil Dean, chief economist at the Gardner Institute. “As we look ahead to 2026, our forecast for moderate expansion draws from deep roots in Utah’s fundamental strengths: strong labor markets, a diverse economy, and consistent population growth. While we remain vigilant about challenges such as housing affordability, Utah’s underlying economic framework appears poised for continued, sustainable progress.”
The 2026 Economic Report to the Governor forecasts continued growth for Utah in the year ahead, albeit at a measured pace. The report calls for moderate job growth, supporting real wage gains with a projected 3.4% increase in average annual pay. The state’s population is projected to grow by 1.3%, outpacing the national average but at a slower rate than Utah’s historical trend.
Other key economic performance highlights from the report include the following:
Low Unemployment – Utah maintained a robust labor market with an unemployment rate of 3.3%, outperforming the national average and reflecting strong employer demand.
Job and Wage Growth – The state saw a 1.5% increase in jobs and a 3.2% rise in average annual wages, signaling healthy economic activity.
Population and Spending Growth – Utah’s population grew by 1.3%, complementing a 3.5% increase in taxable sales, a key indicator of consumer activity. This sustained influx of residents and spending underscores the state’s attractiveness and economic vitality.
Industry Strength – Private education/health services and construction sectors led the way in job creation. These industries continue as significant pillars of the state’s diverse economy, contributing to employment figures.
Record Oil Production – Utah’s oil production reached an all-time high to an estimated 70 million barrels of crude oil in 2025. This peak in energy output highlights a strong sector and provides a boost to the state’s natural resource economy.
Housing Market Dynamics – While housing prices grew less than overall inflation, declining homeownership rates still pose a significant affordability challenge. This trend suggests that while the pace of price increases has cooled, access to homeownership remains a concern for many residents
The Economic Report to the Governor and Summary Highlights are now available online.