Since September, we’ve heard nothing but doom and gloom stories in the media about the economy. It’s been portrayed as a beast that cannot be appeased by billions of government bailout dollars.
Earlier this month, consulting giant Mercer reported some 28 percent of 401(k) retirement plan participants saw a 30 percent or more decrease in their account balances in 2008. Last week, Circuit City announced the final closure of more than 550 stores resulting in the loss of 30,000 Utah jobs. Our state’s financial outlook definitely looks grim, until you dig a little deeper.
Spearheaded by KSL radio’s general manager Chris Redgrave, the Salt Lake Chamber of Commerce is promoting the “What’s Going Right in Utah” campaign. Utah continues to grow, primarily in the health care sector. The Governor’s Office of Planning and Budget is projecting annual growth between 3 percent and 5 percent in the health service industry.
It has been reported by the mainstream media that unemployment numbers are the worst since the Great Depression. But with population growth and new job analytic benchmarks, this assessment is often presented out of context and doesn’t compare apples to apples.
Redgrave said a fully employed America sees an unemployment level around 5 percent (as of Jan. 18, Utah’s Department of Workforce Services reported the nation’s unemployment rate was 6.7 percent). The department also reported that Utah’s unemployment rate is 3.7 percent and a fully employed workforce typically sees a 3 percent level8212;virtually full employment. Utah is bringing the national unemployment average down.
Utah’s economy continues to grow, albeit at a slower rate. Austin Sargent, an economist with the Department of Workforce Services, said Utah’s demographic makeup is a lot different than other states. Our diverse workforce (start-up companies, jobs in varying industries) is helping Utah spread the risk and see opportunities in more areas to absorb losses in shrinking industries.
“We have a much younger population,” Sargent said. “We’ve had much more household formation, and that’s what was benefiting our housing market.”
According to Downtown Rising, developments such as the City Creek Center are projected to pump $3 billion into the local economy during the next five years. And projects such as the new high-rise at 222 S. Main are bringing in new money as private investors are financing new developments.
Although Utah’s economy isn’t bulletproof and certainly won’t see an immediate end to the recession, we are predicted to do a lot better than the rest of the country. During these times, it’s important to remember to explore non-traditional, yet honest methods to create value and mutual benefits in business activities. With the health care and technology sectors trending growth, it makes a lot of sense to steer your education into those areas.
Liz Carlston