Utah Unemployment Rate Breaks 7 Percent

03.18.2010 by Jeff Robinson

(KCPW News) Utah’s unemployment rate has now broken 7 percent, with 95,300 people out of a job.  Mark Knold, Chief Economist for the state Department of Workforce Services, says it hasn’t been that high since 1984.  He expects unemployment to continue going up, but says that’s partially due to people who have given up on finding a job deciding to actively seek work again.

“One, the unemployment rate may be just trying to catch up with what has happened,” he says.  “And also the second factor is I do believe the economy is going to improve as we go into 2010, I think more of these idle workers are going to start becoming active again, looking for a job, and in the short term, they will drive up the unemployment rate until they find another job.”

The manufacturing industry has suffered the most job losses in the past year, at nearly 11,000, while 9,000 construction jobs have been lost in Utah.

The professional and business services industry has actually added 300 jobs since February 2009.  Knold says this is due to more temp jobs being available.  And he sees it as a sign of economic recovery.

“The employer community is starting to get some signals that business is picking up, might need to bring in some extra workers.  Is this long term?  Do I need to hire people permanently?” says Knold.  “Well, maybe not yet, let’s do it temporary, give me more time under my belt, convince me that this is long term, and then maybe I’ll turn it into permanent employment.”

Utah’s unemployment rate of 7.1 percent is still below the national rate of 9.7.