Utah added 50,400 jobs in the year that ended Aug. 31 for a job-growth rate of 4.4 percent, the Utah Department of Workforce Services reported Tuesday. That rate is still among the top five nationally but is down from July's 4.7 percent and down from a peak of more than 4.9 percent in June.
Continued high employment growth drove down the state's unemployment rate in August to 3.2 percent from 3.4 percent in July and 4.1 percent in August 2005. Approximately 42,500 Utahns were unemployed in August, compared with 51,700 in August 2005.
Unemployment around the 3 percent level generally is considered full employment in economic terms. It doesn't mean everyone has a job, but it means that most of the people who want to work (at current wage levels) have one.
The problem the current employment situation creates is that although people are moving to Utah, the rate of population growth from other states is not high enough to fill most of the available positions, said Workforce Services economist Austin Sargent. A prolonged shortage of workers nearly always restricts the ability of an economy to continue to grow and keep creating even more jobs.
"Take construction, for example. Companies would be more willing to start projects right now if there were more more people available to do the work," Sargent said.
Worker shortages eventually can spur in-migration from other states. But so far that has not happened to any large degree as it has in states such as Arizona and Nevada, Sargent said.
Employers in a variety of industries in Utah say getting qualified workers is tougher than it has been in years. Employers are raising wage rates, offering more perks and even increasing or adding signing bonuses to attract job applicants.
Trucking companies are especially scrambling for drivers - whether they are for short or long trips.
Recruiter Keith Lembach, for example, has had to offer $500 signing bonuses to help persuade drivers to apply to fill his company's short-haul trucking positions.
"It's difficult," said Lembach, recruiting and training manager for Scully Distribution Services Inc., which has operations throughout the West. "You may get 10 to 12 calls after you run a help wanted ad in Salt Lake City but only one or two may show up for an interview."
Workers also are increasingly picky, he said. For example, many are not even considering jobs with long commutes such as they did when jobs weren't so plentiful.
Recruiting headaches aside, Sargent said Utah's economy has a lot going for it. Jobs are still being added to the Utah economy at a rate higher than in most other parts of the country. And the additional jobs are a true mix of skilled and unskilled positions, and are in low-, moderate- and high-paying positions rather than in sectors adding only low-paying jobs.
Despite difficulties getting workers, employers are optimistic they will continue filling available positions, said Robert Katz of staffing firm Manpower Inc. in Salt Lake City.
In a recent survey of employers, about 40 percent of respondents in the Salt Lake City area said they planned to hire more workers during the fourth quarter of 2006, while only 3 percent expected to lay off any employees.
About 57 percent said their staffing levels probably won't change through the end of the year.
In Utah County, about 47 percent of respondents said they would hire more workers, Katz said, with 53 percent reporting no change.
Although finding enough employees to hire can be a challenge, "retention of employees has become a real issue," said Robert Katz of Manpower. "Employers need to make sure they are competitive in terms of pay and benefits."
lesley@sltrib.com


