"The Utah economy has returned to the path of long-term prosperity," he said in accepting a report for 2006 from his Council of Economic Advisors. "Employment growth is strong, the unemployment rate is dropping and all job sectors are experiencing healthy increases."
In 2005, Utah outperformed the nation for the second year in a row in employment growth at 3.5 percent, compared with 1.6 percent nationally, according to the report, which was released in a ceremony at the University of Utah Research Park.
"Utah's employment growth is the second highest in the nation," said Robert Spendlove, chair to the governor's Council of Economic Advisors. "After two years of solid performance, Utah appears poised to repeat the long expansion of the 1990s."
On another front, the growth rate in state revenue collections was the highest in more than 25 years, after adjusting for inflation and tax changes, according to the report.
Last year, more than 41,000 people migrated to Utah, attracted to the state's strong economy. The population grew 3.2 percent, more than three times the national rate of 0.9 percent. That net in-migration was at its highest level more than 60 years.
The governor said Utah's economy is expected to continue its strong growth trend, providing state officials with opportunities to upgrade the state's transportation system and boost Utah's sagging public education system. The latter for the past 20 decades has been at or near the bottom of the list in the nation for per-pupil funding. In 2005, Utah was last among states for education spending. Conversely, the report cited potential stumbling blocks for 2006: rising interest rates and costs for building materials, and rising energy prices.
The governor thinks that can be offset by the state's young and educated work force, the comparatively low cost of doing business and affordable housing, which all can contribute to attracting new businesses.
The positive trends for 2005 will spill over into the Legislature's upcoming term, which begins Jan. 16, when the governor and state lawmakers will decide what to do with a $1 billion state revenue surplus. Among other initiatives, Huntsman has proposed $60 million in tax cuts.
