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SALT LAKE CITY — Spring not only brings warmer temperatures and vibrant colors to Utah's landscape, but it also breathes life into the state's economy.
"May into June is graduation season and with it comes the yearly injection of new labor into the economy," said Mark Knold, Utah Department of Workforce Services' chief economist.
Because of this, Utah recorded an increase in year-over-year employment growth, kicking a recent trend that saw year-over-year job growth slow since January.
The Utah Department of Workforce Services' May employment summary revealed that the state's nonfarm payroll employment for May increased an estimated 2.9% across the past 12 months, with the state's economy adding a cumulative 48,900 jobs over the same time span, bringing Utah's current job count to 1,727,100.
Additionally, the unemployment rate is "rock bottom low" at 2.3% with 42,000 Utahns classified as unemployed. This is in stark contrast to the national unemployment rate, which grew to 3.7% since April.
Knold said that Utah's economy picked up the job growth pace in May due to both high school and higher education graduates entering a strong Utah job market that is "thirsting for new labor."
"New labor can find its way into the economy at any time of the year but the graduation season is noted for the most powerful labor surge seen each and every year," Knold said, noting that Utah's labor force increased by 23,400 new participants from April to May.
That's not the only positive input to Utah's labor force, as the state enjoys a natural increase (more people being born than dying). This, Knold said, is the base foundation driver of Utah's economy.
"To give this some context, at the national level, we have — for the first time in our nation's history — arrived at the point where deaths are now outpacing births," Knold said. "That means without a counterbalance from increasing international in-migration, the nation's population count is going to get smaller. From there by extension, so will its labor force, which by further extension also means, so will the nation's economy."
Knold said that this leads to a scenario where, nationally, there aren't enough people aging into the labor force to counter the labor that is aging out and it is "destined to get worse over time."
"The inflow needs to be larger than the outflow. Nationally, that has stopped happening," Knold said.
May Jobs Report: After several months of slower job growth, Utah's labor force saw an increase of 2.9% since May 2022. This growth resulted in 48,900 new jobs. The statewide unemployment rates remained at a very low 2.3%. pic.twitter.com/FQYpJZ87VF
— Workforce Services (@JobsUT) June 16, 2023
Luckily for Utah, this national problem isn't being felt in the state and the demand is actually meeting the supply of new labor with nearly all industry sectors in the state in a position to take on new labor.
"The cumulative effect of all of this is that the Utah economy is seeing continued, strong job growth," Knold said.
He added that he can't think of a year that's been better for teenage summer employment opportunities, with an abundance of job openings and a high demand for low-skilled, possibly even part-time workers.
"This is the exact target of the teen labor market. This is their forte. This is where they can make a contribution to the Utah economy," Knold said.
Utah also enjoys the highest rate of teenage labor participation in the nation at 55%, compared to the national average of 35%.
"We see job growth accelerate here in May and this should roll on into June because the Utah job market is low in labor. It will absorb all the graduating labor that it can get. Because of this, the Utah economy continues to be strong, vibrant and a good opportunity for people who want to find a job," Knold said.
May's full employment summary can be found here.
