SALT LAKE CITY — The Dow Jones industrial average dropped more than 274 points Friday, erasing all the gains in 2012. The reaction came after the U.S. Department of Labor announced 69,000 new jobs added in May — a figure much lower than expected.

Utah economist Kelly Matthews watched as the bad news unfolded. "In a country as large as ours, creating 69,000 jobs is just absurd — especially after a third year of economic recovery," he said.

The market change was partly due to European economic turmoil. But on this same day, there are signs Utah is in somewhat better shape than the nation.

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The U.S. economy suddenly looks a lot weaker. Only 69,000 jobs were added in May, the fewest in a year, and the unemployment rate rose from 8.1 percent to 8.2 percent.

The average home prices in Salt Lake County rose for the first time in four years — up 5.2 percent to $237,000.

The state says Utahns stay on unemployment less than the U.S average — just over 14 weeks, compared to the national average of 39 weeks.

Matthews says Utah is in better shape partly because of the energy industry, and partly due to the business climate.

"Once again, however, our job growth year over year in Utah has hovered between 25,000 and 30,000 a year — which is 2.5 percent to 3 percent (increase) — which is excellent," Matthews said.

Politically, the market news was devastating to President Barack Obama — and an opportunity for challenger GOP Mitt Romney.

"There are steps that could make a difference right now, steps that could also serve as a buffer in case the situation in Europe gets any worse," Obama said Friday.

"The president's policies with regard to taxation, regulation, as well as trade policies, labor policies: all of them have made it less likely for businesses, small and large, to want to hire more people," Romney countered.

The situation is serious enough, practically and politically, that we haven't heard the end of it.

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