Estimated read time: 4-5 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
SALT LAKE CITY -- Businesses create jobs, not government. But Utah greatly benefits from the cooperation between an engaged business community and elected officials that actively work to cultivate a pro-job creation environment. That partnership can be powerful and the proof, as they say, is in the pudding.
New Utah employment numbers were released last week and while the state's unemployment rate remained the same (5.7 percent compared to 8.3 percent nationally), the state economy is still tending in the right direction and creating jobs.
In the rolling 12-month period, from the end of Feb. 2011 to the end of Feb. 2012, the Utah economy created over 30,000 jobs. That's a growth rate of 2.5 percent. Again, Utah is outperforming the nation as a whole as the U.S. economy is growing at a rate of 1.6 percent.
The Department of Workforce Services reports every sector of the Utah economy is growing except one: government. I think we can all live with that.
The Department of Workforce Services (DWS)—the state agency that tracks the unemployment numbers and works to connect Utahns to jobs—reports every sector of the Utah economy is growing except one: government.
I think we can all live with that.
Building a stronger economy
It should be noted that Utah is building things again. Nearly 5,000 jobs have been added in manufacturing in the past 12 months and nearly 3,000 new jobs have been created in the construction industry.
That's particularly good news when you consider the completion of a major project like the City Creek Center, which at its peak employed nearly 1,800 workers. The upward trend means they are moving on to new projects, not to the unemployment line.
The strong construction job numbers also signal overall optimism. We build in good times and tend to put off construction in a rough economy.
DWS says the growth is particularly positive considering there is not, "any notable contribution yet from the home- building market." There's good news there as well, as home sales have risen for eight consecutive months in Utah, reaching their highest level in five years. High home sales reduce excess inventory that will ultimately lead to more new home construction.
More important than the month-to-month figures is Utah's strategy to generate jobs now, to make sure they are the kind of jobs that will be around for a long time and to ensure we have the workforce to generate and fill those jobs for decades to come.
Boosting job creation
As the economy continued to struggle, the Salt Lake Chamber introduced the Utah Jobs Agenda, a 10-point private sector plan to create 150,000 jobs in five years. The list included a focus on education, international trade, infrastructure and more. More than a year after it was first introduced, we are on pace to reach the goal and it has been the focus on the keys to the Utah Jobs Agenda that have moved us forward.
During the recently concluded legislative session, our elected officials made important moves to build on Utah's economic momentum while setting us up for long-term success.
To keep Utah's economy growing, the governor and Legislature worked together to reduce the cost of doing business. By lowering the unemployment insurance rate and rejecting costly health care mandates, Utah businesses have more money to hire and expand.
By restoring previously-cut funding for the Utah Science Technology and Research Initiative, we are in a position to continue attracting top research talent and external funding that totals over $66 million. The Legislature also opted in favor of tax credits for the life science and high tech industries that employ 25,000 Utahns and contribute $15 billion in revenue to the state.
The decision to continue our commitment to transportation investment shows a critical understanding of the important role mobility infrastructure plays in our overall economy.
The Legislature also continued its support of World Trade Center Utah, an organization that plays an important role in boosting Utah merchandise exports, which reached an all-time high of over $18 billion last year.
Investing in Utah's future workforce
Utah is adding more jobs and attracting more businesses. One key to our growth is our young, well-educated, skilled workforce. The Legislature took steps to improve student assessments and better prepare students for college while allocating money to improve math instruction, fund enrollment growth and support educational excellence at colleges and universities.
The fact that more Utahns are going to work every day is one of many reasons to be optimistic.
