The state's job growth in April was 2 percent, virtually unchanged from 2.1 percent in March, the Utah Department of Workforce Services said Tuesday. The state created 24,800 jobs in the year that ended in April, bringing total employment to nearly 1.3 million.
Although Utah's job creation rate is down sharply from a peak of 5.4 percent nearly two years ago, it remains markedly higher than the national rate of 0.3 percent, which translates to a gain of 381,000 jobs nationwide in the past year.
Utah, a state that has less than 1 percent of all U.S. jobs, created 6.5 percent of all the jobs added nationwide.
"We're still one of the best-performing economies in the nation," said Mark Knold, Workforce Services senior economist. "Considering the current environment, we're in great shape, really."
In a note of caution, Knold said he's not sure whether employment growth in Utah will level off or retreat further. As with the national economy, it's anybody's guess just how deep the downturn will go.
Utah's employment growth, as in many other areas of the country, is slowing down in great part because of the sharp downturn in the residential real estate market. As home sales have declined from a blistering pace, people working for home builders, mortgage and title companies, and other companies related to real estate have lost jobs in recent months.
But the effect of the decline in that sector has not spilled over into other employment sectors or to the economy as whole, Knold said.
Utah's unemployment rate in April was a comparatively low 3.1 percent, down from 3.3 percent in March and well below the U.S. rate of 5 percent. About 42,700 Utahns were considered unemployed in April.
Only two sectors in Utah had overall job losses over the past year. Information services was down 1.2 percent, but the decline in jobs at publishing, motion picture, telecommunication and Internet service companies can largely be attributed to a change in the way those jobs are accounted for rather than real job losses, state officials said.
Losses in construction, however, are very real, with an overall loss of 3 percent from last year.
Knold said Utah's economy continues to see job gains in areas such education and health care, a sector that added 5,700 jobs in the past year in such places as hospitals and private educational facilities.
Knold said this sector and the government sector are largely "recession-proof," meaning they aren't going to see huge job losses during a downturn.
The trade, transportation, and utilities sector - which includes jobs at retail establishments - is more directly affected by economic downturn. But Knold said even that sector is still strong in Utah, adding about 7,500 jobs in the past 12 months.
This sector generally benefits from increases in new-home construction as owners buy items to outfit their properties. But with sales and prices down in a number of areas, owners might be less likely to spend as much at retail establishments in coming months.
Also, Knold said, "People who are not feeling as rich as they once did may not go out and buy that new boat."
Although he expects employment growth to slow in this sector, he doesn't expect to see overall job losses given the relative strength of Utah's economy.
At the warehouse club chain Costco, spokesman Dave Harruff said his company has noticed sales of some home-related items are off from recent years.
"It's a little soft, but it's not down," he said, adding that sales of high-end items such as diamonds are holding up in Utah.
"Our [overall] sales are strong in the Utah market."
Knold said he hasn't seen a significant slowing in the leisure and hospitality sector, even though restaurants are included. Nationally, many restaurants are struggling as consumers cut back eating out.
Even sectors that nationally are losing jobs, such as manufacturing, are doing well in Utah, adding 2,400 jobs in the past year.
lesley@sltrib.com

