In an annual report, issued by the U.S. Bureau of Economic Analysis, Utah has traditionally ranked low in per-capita income - total personal income divided by population. In great part, that can be attributed to the state's comparatively youthful population. Nearly one-third of Utah's population is under the age of 18, compared with only one-quarter nationally.
"We rank so low because Utah has so many kids - there's this high share of the state's population who aren't earning much - or anything at all," said Mark Knold, chief economist for the Utah Department of Workforce Services.
In addition to a high share of young people, Utah has a comparatively big share of people working part time - an estimated 25 percent of Utah workers, compared with 17 percent nationally, Knold said. Utah's percentage is the highest nationally; Minnesota is No. 2, at 23 percent.
"Part-time people generally earn less than full-time workers," Knold said.
A better gauge of Utah's wage situation, Knold said, is median household income as figured by the U.S. Census Bureau. The latest ranking puts Utah at No. 18 - close to the middle.
Though most economists agree that per-capita income is a flawed measurement for Utah, Knold said per-capita income growth is a fairly good indicator of whether a state's wages are on their way up, stagnating or declining.
"The fact we grew by 6.1 percent in per-capita over the past year is pretty good. That's a strong increase," he said.
The surge was driven largely by Utah's strong job growth. Many employers over the past two years have had to raise wages to get enough workers amid spot shortages in a variety of industries. That has put wages in Utah more in line with some other states.
Knold said Utah's wage growth could slow in the coming year as Utah's job growth and economy kick into lower gear amid the national downturn. In that situation, employers would find it easier to recruit and retain employees, so they might be less pressured to raise wages. Even so, Utah probably will continue to post respectable wage gains in 2008 and beyond, he said.
Although wages have grown in Utah in recent years, many families along the Wasatch Front don't feel better off financially because double-digit home-price increases have made buying more difficult.
"Certainly wages haven't kept up with the increase in housing prices," said Stella Allen, executive director of Salt Lake Valley Habitat for Humanity, which serves Salt Lake and Tooele counties. "Those home price increases are wonderful for the people already in homes, but they're not for the people who are trying to buy. For many families, buying a $200,000 home is a stretch."
Allen said she was pleased to hear that Utah has seen strong wage growth, but she worries that any gains people have made are being eaten up by higher expenses that go well beyond housing. "We're seeing higher food and gas prices, as well," she said.
The good news, according to Midvale Realtor Michelle Mitton, is that home prices are moderating along the Wasatch Front, with some actually falling. Concessions offered by sellers are helping make homes more affordable, she said, adding that "it couldn't be a more perfect environment right now, in that sense."
Navy recruiter Nicholas Smith III couldn't agree more.
He used to live in San Diego, where home prices were out of his reach. He recently accepted a job in Utah, where he earns about the same amount of money as in California but where the cost of housing is dramatically less.
"It's nice to live in San Diego, but home prices are so high," said Smith, who, working with Mitton, recently closed on a home in Herriman. He not only thought he got a good price, but the seller paid all his closing costs.
lesley@sltrib.com
