Research Weekly - Benefits of a Slowing Job Growth Rate
Utah has one of the lowest unemployment rates in the nation at 3.4%, which is an indicator of a strong economy. However, a low unemployment rate does bring its own economic development challenges. Many Utah companies struggle to find qualified labor because our unemployment rate is so low. A higher unemployment rate in the 4.0% to 4.5% range would likely provide Utah companies better access to needed labor while also providing the unemployed with job opportunities at competitive wages.
While Utah’s unemployment rate has shown little signs of increasing to this hypothetical ideal, Utah’s job growth rate has been decreasing, and a lower job growth rate will facilitate higher unemployment. Though this would be devastating in times of recession, it may catalyze more local growth by providing employers the ability to hire and expand within the state.
But don’t we want high job growth? While a high job growth rate is great in the short-term, a slightly lower long-run sustainable job growth rate provides stability and reliability. Utah’s decreasing job growth rate may be showing signs that Utah’s job market is stabilizing.
As EDCUtah promotes Utah to companies looking to move to Utah, we always highlight Utah’s economic strengths. This is one more way EDCUtah can show that Utah has the right economic environment for any business.