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- Utah's labor market is experiencing hiring challenges despite having a lower unemployment rate of 3.3% compared to the national average of 4.1%.
- A WalletHub study ranks Utah among the Top 5 states struggling the most with hiring.
- Experts point to a disconnect between employer offerings and post-pandemic worker expectations, such as flexibility.
SALT LAKE CITY — With a national unemployment rate of 4.1%, Utah's August job report falls just under that with an adjusted average of 3.3%, the Department of Workforce Services reported.
In April, The Wall Street Journal ranked Utah as the hottest job market in the country. That said, a recent study by WalletHub found Utah to be among the Top 5 states struggling the most with hiring employees.
Top 5 states struggling to hire employees:
- Alaska
- Utah
- West Virginia
- Oklahoma
- South Carolina
"The labor market in Utah continues to expand at a healthy rate, even as the unemployment rate has ticked up," Ben Crabb, chief economist with the Utah Department of Workforce Services, said in the August 2024 employment summary report. "Utah still sees a strong labor market as most sectors of the economy have added jobs. Much of the rise in the unemployment rate can be attributed to new entrants into the labor market who are searching for a job, rather than due to an increase in layoffs."
Which job markets are most affected?
Trends show the labor market has bounced back since the COVID-19 pandemic, when unemployment reached 8.1% in 2020, but employers are still struggling to hire in many job sectors.
The U.S. Chamber of Commerce said jobs that do not offer remote work and have lower wages are struggling to fill vacant jobs:
"The leisure and hospitality industry has experienced the highest quit rates of all industries, with the accommodation and food services subsector of this industry experiencing a quit rate consistently around or above 4% since July 2022."
According to Utah's August 2024 employment summary report, current job market trends in Utah show job opportunities vary by sector.
Most significant private sector gains in the past year:
- Education and health services: 14,500 jobs
- Construction: 8,900 jobs
- Professional and business services: 6,900 jobs
Most significant private sector losses in the past year:
- Trade, transportation and utilities: -2,000 jobs
- Financial services: -300 jobs
- Leisure and hospitality: -100 jobs
"One reason for the challenge in filling open positions is that some employers have failed to understand and adequately respond to the post-pandemic needs of employees," Linda Fisher Thornton, an adjunct professor in human resource management at Richmond University, said, per WalletHub.
"Job candidates want flexibility, a high-trust workplace, and transparent, caring leadership, and they are typically very good at spotting red flags that indicate otherwise during the application and interview process," she added.
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Emma Pitts
