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Show Utah's economic growth swings up fourth quarter of 1987 saw an increase in-crease of 1.2 percent. In addition, the first quarter of 1988 saw an additional increase of 2.7 percent. The Utah State Tax Commission is forecasting an increase for calendar calen-dar year 1988 of 4.5 percent. The fourth quarter of 1987 also saw non-farm wages seven percent one must also compare the differences differ-ences in the costs-of-living in order to fairly judge life in Utah. The American Chamber of Commerce Researchers Association publishes a quarterly composite cost-of-living comparison for selected metropolitan met-ropolitan areas. Based upon a U.S. index average of 100, Salt Lake UNEMPLOYMENT RATES, UTAH AND THE U.S. Percent of Labor Force Unemployed 1978-1988 1 1 , i 1 i s-T"?h 1 1 1 1 1 9 Lgk h' -. JtU ' i UTAH "J" 3-i J I liilii I I Liki&J l l l l l 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 By JEFF THREDGOLD Economist The growth pace of the Utah economy has quickened over the past nine months, especially when compared to the lethargic growth experienced during the prior eighteen eight-een months. This stronger economic growth is evidenced by a sharply lower level of unemployment, stronger job creation, an increase in business busi-ness activity and subsequent sales tax collections, and, to an extent, the current $ 1 10 million budget surplus. sur-plus. The current Utah unemployment unemploy-ment rate of 5.0 percent is the lowest level of the 1980s, and is a major reduction from the 6.7 percent per-cent level of one year ago. However, the decline in the unemployment un-employment level has as much to do with out-migration as it does with more rapid job creation. Utah saw the creation of 1 1 ,000 net new jobs over the past twelve months, nearly twice the level of job creation crea-tion during the previous 12-month period. The 11,000 new jobs validate vali-date the job growth forecast of 10,000-13,000 of one year ago by Key Bank. : Strength in the service and manufacturing sectors have been the shining stars of Utah job creation. crea-tion. The service sector recorded 8,600 new jobs (plus 5.9 percent) during the past twelve months, with personal business services and amusements (5,800 new jobs, plus 11 percent) leading the way. : The manufacturing sector also continued to blossom, with the creation of 4,800 new jobs (plus 5.3. percent) over the past twelve months. Mining, oil-gas extraction, extrac-tion, retail trade, and the transportation-communications-utilities sectors registered modest job growth. Weakness in employment continued to center around the construction sector, with the loss of 3,900 jobs (-14.2 percent) over the past year. Modest weakness has also occurred within the wholesale whole-sale trade and Federal-State government gov-ernment employment sectors-, sectors-, While calendar years 1986 and 1987 saw the total of retail sales, services and business equipment purchases decline by 1.6 percent and 1.5 percent, respectively, the City was measured at 98.3, or below be-low the average national cost-of-living for all items in the index. Salt Lake City was below the national average in housing costs (89.4), groceries (93.1), and utilities (96.4), while above the national average av-erage for transportation (104.9), health care (100.5), and miscellaneous miscel-laneous (105.0). It is interesting to note that Provo, had the lowest cost-of-living of any city in the entire en-tire national survey measuring 87.5 for the composite index. higher than 12 months previous. The state budget surplus of more than $100 million is also a sign of better economic performance, as well as indicating that the tax increase in-crease program of the recent past was excessive. One of the strengths of the Utah economy is its degree of diversification. diversifi-cation. The Utah economy is not dependent upon one major industry indus-try or product, as is the situation in many states, but has an admirable mix of employment sectors. " One of the criticisms heard about living in Utah relates to the low level of per capita income. Recent data indicated that Utah per capita personal income ranked 48th in the nation at $11,246, only 73 percent of the national average of $15,340. This data is accurate, but also misleading. mis-leading. Utah per capita income is low as a result of slightly lower wages but, more importantly, because of the large size of Utah families. A more realistic measure of Utah incomes would be average income per household. By this measure, Utah ranked 33rd among the states at $35,580, 90 percent of the national average of $39,748. When comparing variations in income levels between the states, |