BUSINESS + ECONOMY

May’s Utah employment report showing signs of inflation impact

Jun 17, 2022, 10:36 AM | Updated: 10:43 am
A now hiring sign in an Arby's window.; the Utah employment summary for May showed a slight slowing...
A “now hiring” sign at an Arby’s in Salt Lake City on Thursday, Dec. 30, 2021. Photo credit: (Scott G. Winterton/Deseret News.)
(Scott G. Winterton/Deseret News.)

SALT LAKE CITY — The Utah Department of Workforce Services released its May 2022 employment summary Friday morning.

The unemployment rate for the month landed at 2.0% compared to last month’s rate of 1.9%. Utah’s rate continued to sit below the national average, which came in at 3.6%.

Utah’s current job count tallied 1,662,300, a 3.5% increase in the past 12 months.

“Utah’s economic performance continues to push along at a strong pace,” said Mark Knold, Chief Economist at the Department of Workforce Services.

“The unemployment rate remains at a historically low level, and job growth is still one of the nation’s best. The job growth rate has been abating as the year has progressed. This is expected and is a reflection of the current performance compared to a Utah economy that was rapidly improving a year ago. As this year progresses, the more the economy improves from a year ago, the more this year’s job growth will trend downward. We anticipate that by later this year Utah’s job growth rate will be around its yearly average of 3.0%.”

The report showed private-sector employment recorded a 50,100 job increase over the past 12-month period led by Trade, Transportation, Utilities, Leisure and Hospitality, Construction and Education and Health Services.

Nate McDonald, deputy director of the Utah Department of Workforce Services, noted that job growth slowed slightly.

“Job growth slowed a little bit as well, it went from 3.8% to 3.5%,” said Mcdonald, adding, “You can’t sustain job growth at a high level when your unemployment rate is at 1.9% and 2%…You’re going to see some slowing and that’s just what we’re seeing happen there.”

The slowing of the economy wasn’t unexpected, according to Knold.

“The private sector growth rate slowed by an unexpectedly large amount; five-tenths of a percentage point.”

Knold noted that the percentage point declines aren’t a lot but pointed out that the trend gives a wider picture. 

“May largely represents the first month that we are starting to get a full impact view of how higher gas prices and higher inflation and the fed increasing interest rates may be impacting Utah’s economy,” Knold said.

Kate Davis contributed to the reporting of this story.

Related:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

Most Utah cattle farmers have been praying for a good winter and they are getting exactly that. How...
Alex Cabrero

Utah cattle ranchers losing calves to winter conditions

Utah cattle ranchers report 10-to-20 percent of their calves have died this winter, a percentage roughly 3 times higher than past years.
1 day ago
salt lake city skyline pictured, the city is looking at letting apartments have ADU's...
Adam Small

Talks on more tiny apartments continue in Salt Lake City, council expected to vote soon

Accessory Dwelling Units, or ADUs, are basically tiny apartments attached to or built next to a private residential home.
1 day ago
FILE - A hiring sign is in front of a Target store in Manchester, Conn., Nov. 39, 2021. (AP Photo/T...
MATT OTT AP Business Writer

US jobless claims inch down as labor market remains tight

Jobless claims in the U.S. for the week ending March 18 fell by 1,000 to 191,000 from the previous week, the Labor Department said Thursday.
1 day ago
Utah's Attorney General has sent a letter to the federal government claiming climate investing, or ...
Lindsay Aerts

Utah AG claims ESG or ‘climate investing’ contributed to SVB collapse

The AG's office believes Silicon Valley Bank, SVB, made "speculative sustainability investments," involving ESG in the solar industry.
2 days ago
a man pictured next to currency exchange, rate hike expected today...
Associated Press

Asian shares decline after Fed hints rate hikes may end soon

Higher rates can undercut inflation by slowing the economy. But they raise the risk of a recession later on, and they also hurt prices for stocks and other investments.
2 days ago
FILE: U.S. Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a...
Nicole Goodkind, CNN

The Fed lifts rates by a quarter point as banking turmoil complicates inflation fight

Originally Published: 22 MAR 23 06:37 ET Updated: 22 MAR 23 14:00 ET       (CNN) — The Federal Reserve raised interest rates by a quarter point on Wednesday as it attempts to fight stubbornly high inflation while addressing risks to financial stability. Investors and economists had widely anticipated the quarter-point increase — or even a pause — amid the […]
2 days ago

Sponsored Articles

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...
BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.
Skier being towed by a rider on a horse. Skijoring....
Bear Lake Convention and Visitors Bureau

Looking for a new winter activity? Try skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.
Banner with Cervical Cancer Awareness Realistic Ribbon...
Intermountain Health

Five common causes of Cervical Cancer – and what you can do to lower your risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.
Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get ready for fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.
happy friends with sparklers at christmas dinner...
Macey's

15 easy Christmas dinner ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
May’s Utah employment report showing signs of inflation impact