Estimated read time: 2-3 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 Information in the story may be outdated or superseded by additional information.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 — The effects of some restrictions from the coronavirus outbreak being lifted in Utah in recent weeks are evident in the most recent data as the state unemployment rate dropped to 8.5% for the month of May — the second lowest in the nation behind only Nebraska at 5.2%.
During April, Utah’s jobless rate was reported to be 9.7%. But Friday’s report indicated that April number was actually revised upward to 10.4%.
The Utah Department of Workforce Services reported Friday that the Beehive State’s nonfarm payroll employment for May 2020 contracted by an estimated 4.8%, losing 75,400 jobs compared to the same month in 2019. The data showed that most job cuts were from temporary furloughs brought on by the COVID-19 shutdowns of businesses statewide.
With the heavy job losses during the period, data from the U.S. Bureau of Labor Statistics showed Utah as the top state for total job growth in the U.S. at minus 4.8%. Utah was also top-ranked in private sector job growth at minus 4.6%.
According to department numbers, two of 10 private-sector major industry groups in Utah measured posted net job gains in May, with construction adding 8,000 jobs and financial activities gaining 500. The remaining eight industry groups posted employment declines. These were most impactful in leisure and hospitality services (-42,100 jobs); professional and business services (-7,800 jobs); and trade, transportation and utilities (-7,200).
Currently, 1,485,800 Utahns are considered gainfully employed, while an estimated 137,200 individuals were registered as unemployed during the month of May.
Nationally, the U.S. unemployment rate decreased to register at 13.3%.
Utah’s private sector employment also saw some improvement as two of 10 private-sector major industry groups measured in the establishment survey posted net job gains last month. The construction industry added 8,000 jobs and financial activities added 500 new positions. The remaining eight other industry groups posted declines in employment.
The most losses were in leisure and hospitality services, which was down 42,100 positions; professional and business services, which lost 7,800 jobs; along with trade, transportation and utilities, which was down 7,200 positions.
“May’s employment improvement marks April as the low point in the COVID-19 economic setback,” said Mark Knold, the Department of Workforce Services’ chief economist. “We expect May to be the largest single month for job improvement with the initial return to work for many employees as consumer activity greatly increased.
“With the May job improvement, nearly one-quarter of Utah’s COVID-idled workers have returned to work.”
