Font Resize
Could Utah's economy finally be on the mend?
The state job report out Thursday wasn't exactly upbeat. Utah's economy has lost 41,800 jobs -- 3.3 percent of the state's total -- over the past year, pushing unemployment up a bit higher in May.
That said, there are signs that the state's downturn may be bottoming. One of the strongest signs is that initial unemployment insurance claims are beginning to slow, said Mark Knold, Utah Department of Workforce Services economist.
"We are not out of the woods yet, as employment is one of the last areas to recover once the business climate improves, but there is a feeling that the economy is close to turning a corner," he said.
About 74,800 Utahns were unemployed
Utah is still faring better than much of the rest of the country -- the U.S. unemployment rate in May reached 9.4 percent -- a 25-year high. Many economists forecast the rate could reach 10 percent by the end of the year.
But on the brighter side, unemployment benefit claims nationally dropped for the first time since January, one indication that the U.S. economy is stabilizing after the worst recession in half a century. Other positive news: The average number of claims over the past four weeks also has fallen to the lowest level in four months.
The same trend is occurring in Utah. Initial unemployment insurance claims, made by those who have just lost jobs, peaked at a weekly rate of about 5,300 in early January. The weekly claims rate remained high -- in the range of 3,000 to 4,000 per week for much of this year. But in the past four weeks, those claims are now down around 2,700, the state said.
"It's still very high. You want to see these down
Any recovery, though, will be very gradual. Knold said Utah's job losses and unemployment rate may still get worse in the coming months. To see those numbers improve, companies have to stop laying off people and start hiring again.
Consumers, strung by the bad economy, aren't going on a spending spree anytime soon. And companies are likely going to be slow to hire new employees.
So when will it happen ?
Conference Board economist Ken Goldstein said if those trends continue, a "slow recovery" should start before the end of the year, but he cautioned that the job market will take longer to rebound. Knold said the same holds true for Utah.
The Associated Press contributed to this story.
Layoff opens path to own business
Jaren Angerbauer, of Holladay, was laid off in December, and rather than look for another job, he decided to start his own consulting business.
It wasn't a decision that Angerbauer had made lightly. He and his wife have a mortgage and five children, ages 1 to 16, and the business had to start generating income rather quickly.
At first, Angerbauer relied on his savings, credit cards and his 401(k), which he cashed out, to make ends meet and develop his business, which helps companies market themselves using technology. While business is better now, he's still working to get out of debt.
One other lingering problem: health insurance. He and his wife are uninsured right now, and his children are covered by the Children's Health Insurance Program, or CHIP, a government-funded insurance program for those without health insurance.
Angerbauer said while he loves owning his own business, he's still adjusting to lack of a regular paycheck. "I'll never stop worrying if there is [enough] money in the bank account," he said.
Thinking outside of the box
Twentysomething Becky Rosenthal, of Salt Lake City, never would have dreamed that four years out of college she would be unemployed, and with few job prospects.
But that's where Rosenthal is right now after being laid off in April from a marketing job she held for three years until the Park City-based lodging company went out of business.
"There's just not a lot of jobs out there right now," she said. "So I'm trying to think a little outside the box. Sometimes during dire times you need to be a little more creative."
Rosenthal said she's trying to develop her food blog, a hobby in recent years, into a money-making enterprise, perhaps by selling ads on the site. She's also contemplating going to culinary school. In recent weeks, she's worked part-time at a bakery to help make ends meet.
"Right now we can make ends meet on what my husband brings in and my unemployment check," she said. "But long term, I need to figure out what I'm going to do."
A turn for the better
Mechanical engineer Adrian Williams, of North Salt Lake, lost his job mid-February, and the pressure to find a new job began almost immediately,
Like many Utah dads, Williams is the sole breadwinner in the household. His wife, Jessica, takes care of the couple's three children, ages 8 months, 2 and 5. The couple was still paying off medical bills from the birth of their last child when Williams got the bad news.
For three months, Williams looked for another job -- any job. During that time, Williams worked a part-time job at Sears, which, combined with unemployment, helped the family make ends meet until late May, when he landed another job in the same field.
He got the job after he applied for an open position he wasn't really qualified for. When a company representative called, they informed him of an unadvertised job in mechanical engineering.
While the benefits are better, the pay is slightly less than his last job. But it's a job in his field, he says, and a good one at that. Plus, a Web site created by his wife while he was unemployed is taking off, adding to the family's income as well.
"I still am a little apprehensive about the state of the economy," he said. "But the good news is that I'm with a great company now that I feel is going to be around for a long time."
