State economy is 'plugging along'
Speaking at the Wasatch Front Economic Forum, Huntsman accepted a copy of the just-released Economic Report to the Governor, compiled by the Governor's Office of Planning and Budget. The 246-page report reflects moderation to the white-hot economy of the past few years.
"The recurring theme that's out of the Economic Report to the Governor is tremendous, tremendous growth over the past several years, leaning toward some moderation in 2007 and further into 2008," said Juliette Tennert, chief economist in the Governor's Office of Planning and Budget. "But with that moderating, it's still very, very healthy growth, compared to the rest of the nation."
"Without question, there is uncertainty out there," Huntsman said. "There are the winds of change blowing in every state and every town in this country right now. But with that, you look at our strong job growth numbers, (and) we're leading the nation, which I think is a good indicator."
A low unemployment rate is "a reflection of our overall competitiveness. All of our industry sectors are firing on all cylinders, which is important," he added.
"We've always complained about creating jobs but never jobs that had that bump in wages and income, and I think we're seeing that trend change," he said. That has resulted in Utah keeping its "brainpower" as the state's youths have opted to remain in Utah rather than leave for higher-paying jobs.
Tennert said Utah's unemployment rate was 2.7 percent in 2007, even lower than the 2.9 percent posted in 2006. Job growth in Utah peaked at 4.8 percent in 2006 and is now "heading to more-sustainable, long-term rates." The state is adding 150 jobs daily, on average, and Utah's job growth in November was more than four times the national rate. "Utah's really plugging along well, relative to the rest of the nation," she said.
The 22nd annual report also predicts 2008 population growth of 3.1 percent, employment growth at 3.2 percent, unemployment remaining below 3 percent, continued average wage growth, a moderation of construction employment growth due to a slowdown in single-family residential construction, and nonresidential construction at record highs because of continued business, religious and government projects.
Tennert said Utah's economic expansion began in 2004 and peaked in 2006. The year 2007 represented a return to "more sustainable" levels. "Relative to the rest of the nation," she said, "our economy growth will still be very healthy."
E-mail: bwallace@desnews.com
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