The state's economy added only 11,500 new jobs in the year that ended in June for an employment growth rate of 0.9 percent, the Utah Department of Workforce Services said today. That's down from 1.3 percent in the year that ended in May and down significantly from a peak of 5.4 percent in the year that ended in June 2006, when the state's economy added 54,000 jobs.

Utah's economy, once a stellar outperformer nationally, is now moving closer to the national average, which in June totaled a negative 0.1 percent.

On the unemployment side, Utah's rate in June was 3.2 percent, which translates into about 44,800 Utahns who were looking for work. That's up from 36,400 people in June 2007, when unemployment was 2.7 percent, but still well below the national jobless rate, which is at 5.5 percent.

As in other parts of the country, Utah's economy is being hurt by the downturn in the residential real estate market.

Tighter lending standards put in place after the nation's subprime crisis have made it harder for potential buyers to qualify for a home loan. Also, after years of home-price runups, homeownership is now out of reach of many Utah families.

With fewer homes being sold and built, many of those looking for work in Utah have lost jobs related to residential real estate, such as positions in real estate brokerages and title companies.