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Show wwe" THE OGDEN VALLEY NEWS January Mountain Page 17 15, 2006 States Small Business Owners Face Ever Tightening Labor Markets t i aq g .8& n i Davis County payrolls expanded by 4,000 jobs (4.2%) in the past year. The unemployment rate was 3.7% in the latest month, down from 4.4% one year ago. ~ Utah’s unemployment rate was estimated at 4.0% in the latest month, down sharply from the prior month’s 4. fe rate. Total Utah employment is upa catinited 41,200 jobs during the past hs Rocky Mountain Region economic ¢ growth has led to sharp declines in area unemployment rates. Such declines make life more difficult for the Region’s small businesses. The U.S. economy added 108,000 net new jobs in December, roughly half of economists’ projections. However, the two prior months were revised higher by 71,000 jobs. The U.S. unemployment rate declined to 4.9% Buddy, Can You Spare A Worker? Strong U.S. and regional economic growth of the past two years has led to a significant tightening of labor ene This scarcity of labor to fill open positions is making life more difficult for small business owners and managers in the Rocky Mountain States. In addition, tightening labor markets make it more difficult for small businesses to retain their top employees The nation’s top four job creation states are Nevada, Arizona, Utah, and Idaho (as measured by % gain). Wyoming aa ranks eighth, while Colorado ranks 14 Small businesses typically do not have the ability to match wage and benefit packages of larger employers. As a result, small businesses face a greater challenge to remain fully staffed in times of tight labor availability. ost states in the region have seen a wubstantial decline in the unemployment rate. for example, now has its lowest unemployment rate (3.4%) in the state’s history. The Utah Small Business Index is based on the viewpoint of the small business owner or manager. As a result, a decline in the Utah unemploy ment rate is a negative contributor to the Index. Utah Employment The Utah unemployment rate—the most heavily weighted component of the a Bank Small Business Index for Jtah—was estimated at 4.0% in the latest month, down sharply from the prior month’s 4.5% rate. The current 4.0% rate compares to a jobless rate of 5.1% during the same month one year ago. A lower Utah unemployment rate is a negative contributor to the Index as it implies decreased access to Utah labor. Utah’s unemployment rate averaged 5.2% in 2004, 5.7% in 2003 and in 2002, and 4.4% in 2001. By comparison, the 3.4% average during 2000 was one of the lowest annual rates since the early 1950s. These rates compare to an average Utah Pome rate of 3.5% between 1995 a Total Utah employment rose by an estimated 41,200 jobs (up 3.6%) over the ast 12 months, one of the strongest annualized gains in eight years, and the fourth strongest job growth rate in the nation. This rise compares to a revised gain of 43,800 jobs in the prior year- over-year period. These totals compare to gains averaging 38,000 new jobs annually during the 94-2000 period and a net loss of 1,300 jobs in 2001 through 2003. Stronger job gains, leading to greater income creation and rising retail spending, has a positive impact upon Utah’s small businesses— and therefore, the Index. The Zions Bank Small Business Index for Utah was 109.7 during December 2005, down from a revised 113.2 during November 2005. The Index measures business conditions from the viewpoint of the Utah small business owner or manager. A lower Index number is associated with less favorable business “conditions” for Utah’s small businesses. The Index uses 100.0 for calendar year 1997 as its base year. The Index also includes revisions to various historical or forecast components as they become available. Local Performance Weber County experienced job growth of 2,200 jobs (2.4%) from a year ago. Joblessness registered 4.3%, down from 5.4% unemployment rate one year ago. Davis County payrolls expanded by 4,000 jobs (4.2%) in the past year. The unemployment rate was 3.7% in the latest month, down from 4.4% one year ago. Sache County employment grew by 1,200 jobs (2. 5%) in the latest 12-month period. The area’s jobless rate was 3.1%, down from the 3.6% rate of one year ago. Salt Lake County employment rose by 17,400 jobs (3.2%) over the year. The county’s unemployment rate fell to 3.8% in the latest month, down from 4.9% last year. Utah County employment grew by 6,500 jobs (3.9%) over the st 12 months. The area’s jobless rate was 3.5%, down from the 4.4% rate of one year ago. Washington County payrolls expanded by 3,900 jobs (8.8%) in the past year. The unemployment rate was 3.1% in the latest month, down from 4.0% one year ago. National Employment The U.S. Department of Labor reported a net gain of 108,000 jobs in December 2005, roughly half of Wall Street’sS projected gain. However, net job gains in October and oe were revised higher by 71,000j November’s revised gain of 305, 0001 net additional jobs was the largest monthly gain since April 2004. The U.S. economy added slightly more than two million net new jobs in 2005, as compared to 2.2 million net new jobs in 2004. Net job growth has averaged 1.8 million jobs annually during the past 10 years. The U.S. unemployment rate declined to 4.9% in December, matching four-year lows reached in August and October 2005. By comparison, June 2003’s 6.3% rate was the Highest in nine years. s producing industries saw a net increase of 12,000 jobs in December, with a gain of 18,000 manufacturing jobs, the third monthly gain in a row. The construction sector lost an estimated 9,000 jobs last month. The nation’s service providing sector added 96,000 net new jobs in December, led (as usual) by the addition of 25,000 i care education. de ens and business services em 3,000 new jobs in December, with of 23,000 jobs in leisure and hospitality (hotel) jobs. oS The Zions Bank Small a Index for Utah declined to 109. December 2005, down from a revised 113.2 in November 2005. Weber County experienced job growth of 2,200 jobs (2.4%) from a year ago. Joblessness registered 4.3%, down arn the 5.4% unemployment rate one > t ~ ‘Oo Highlights The January 2006 Zions Bank Small Business Index for Utah will be released on February 7, 200 Zions Bank is Utah's oldest financial institution, and is the only local bank with a statewide distribution of branches, operating 111 fullservice branches throughout Utah. For more information, contact Zions Bank's Eden Valley office at (801) 745-0835. Additional information on Zions Bank is available at <www.zionsbank.com> Settle into the relaxing resort lifestyle at Wolf Creek Resort. Minutes from Powder Mountain, Snowbasin and Wolf Mountain, choose from 4 unique communities offering condominiums and free standing homes from $315,000. Gently sloping homesites offer the opportunity to create your own mountain retreat with captivating views of the valley. Homesites are approximately 1/2 acre with a great selection of view options with prices starting from the high $200,000's. |