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Show January 1 03.qxd 12/7/2021 3:24 PM Page 4 THE OGDEN VALLEY NEWS Page 4 Volume VII Issue VI January 1, 2003 Impressive Gains in Worker Productivity Allow Utah’s Small Businesses to Do More With Less Highlights The Zions Bank Small Business Index for Utah rose to 79.1 in November 2002, ver sus a revised 77.8 in October. Utah’s unemployment rate increased to 5.3% in November 2002, versus 5.1% in October, and matching September’s rate. Total Utah employment fell by 12,800 jobs during the past 12 months, an improvement over larger declines in recent periods. Powerful gains in worker productivity allow companies to provide wage gains for employees without having to raise prices. The nation’s unemployment rate increased to 6.0% in November—up from October’s 5.7% rate—while net U.S. employment declined by 40,000 jobs. Powerful Productivity More importantly, productivity gains during the past 12 months rose at a powerful 5.6% annual rate, the largest increase in 36 years. Federal Reserve Chairman Greenspan has been a strong believer that higher productivity allows the economy to grow at a faster level without leading to rising inflationary pressures. Productivity gains in recent years have been impressive, especially when viewed against the average 1.4% annual gain during the 1970s and 1980s. The economy’s traditional non-inflationary growth potential was viewed near 2.5%, the sum of a 1.5% rise in productivity and a 1.0% annual increase in the population. Productivity rising at a 3.0% or higher annual rate, combined with 1.0% population growth, leads to higher levels of growth potential without the ravages of inflation. Utah Employment A key to rising standards of living for consumers in any economy is the desirability of workers to be more productive on the job. Higher worker productivity, or rising output per worker per hour, allows companies to produce more goods and/or services and pay higher wages without having to raise prices or add new employees. Rising productivity has been the case in the U.S. economy in recent years, and particularly in recent quarters. According to the U.S. Labor Department, average worker productivity in 2002’s third quarter rose at an annual rate of 5.1%, sharply above the original 4.0% estimate. The Utah unemployment rate—the most heavily weighted component of the Zions Bank Small Business Index for Utah—was 5.3% in November 2002, up from October’s 5.1% rate. March’s 5.9% rate was the highest since 1987. November’s 5.3% rate compared to a jobless rate of 5.2% during November 2001. A higher Utah unemployment rate is a positive contributor to the Index as it implies increased access to Utah labor. Utah’s unemployment rate averaged 4.4% in 2001. By comparison, the 3.2% average during 2000 was one of the lowest annual rates since the early 1950s. These rates compare to average Utah unemployment rates of 3.7% during 1999, 3.8% in 1998, and 3.1% during 1997. Total employment in Utah actually declined by 12,800 jobs (down 1.2%) over the past 12 months. This drop compares to the revised 12,200 jobs lost in the prior yearover-year period and the 16,000 year-overyear decline in August. Year-over-year job losses this year represent the first declines in 20 years. These totals compare to gains averaging 38,300 new jobs annually during the 1994-2000 period. Weak job growth or actual employment declines, leading to lesser income creation and weaker retail spending, has a negative impact upon Utah’s small businesses and, therefore, the Index. The Zions Bank Small Business Index for Utah rose to 79.1 during November 2002 from a revised 77.8 during October 2002. The Index measures business conditions from the viewpoint of the Utah small business owner or manager. A higher Index number is associated with more 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. National Employment The nation’s unemployment rate was 6.0% in November, up sharply from October’s 5.7% rate. November’s 6.0% rate matched that of April 2002, and ranks as the CONSIDER THE FOLLOWING NEW COMMUNITIES FOR YOUR “SKI GETAWAY” (WITH A FABULOUS GOLF COURSE IN YOUR BACKYARD WHEN THE SNOW MELTS) THE FAIRWAYS AT WOLF CREEK Directly Adjacent to fairways 14, 15, 16, & 17, these single and two level twin homes are ideally located for yearround enjoyment. Four home plans available, offering three bedrooms with optional den and attached two car garages. Developed by Legacy Properties with completion anticipated early summer, 2003. highest U.S. jobless rate in eight years. The U.S. Department of Labor’s business survey reported a net loss of 40,000 jobs in the economy in November. Financial markets had expected of gain of roughly 30,000 jobs. Partially offsetting the grim news was a net 20,000 upward revision to employment totals during September and October. The goods-producing sector of the U.S. economy lost 51,000 jobs in November, including the loss of 45,000 more manufacturing positions. The manufacturing sector has experienced job losses for 28 consecutive months, with total employment down more than eight percent. Construction employment has declined by an estimated 26,000 jobs over the past two months, after adding 48,000 jobs in the two prior months. Service-providing jobs rose by a meager 11,000 in November. Retail trade lost an estimated 39,000 jobs in the month, with sector jobs down by more than 250,000 over the past 15 months. The finance, insurance and real estate sector added 7,000 jobs in November, with 88,000 jobs added over the past five months. Strong mortgage refinance activity has led to new job gains. The government sector added another 8,000 jobs in November. The December 2002 Zions Bank Small Business Index for Utah will be released on January 7, 2003. Note: This information was provide courtesy of Jeff Thredgold Thredgold, Economic Associates Economic Consultant to Zions Bank. For more information call (801) 5339663. Convenient - Quick Quality Guaranteed AAA DRYWALL REPAIR Jim Zeleznick 552 S. 8600 E. Huntsville, UT 84317N “NO JOB TOO SMALL” Licensed, Insured & Preferred Office/Fax: 801-745-3035 Priced from $249,900 TRAPPERS RIDGE DECORATED MODEL OPEN!!! 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Ogden River Watershed and Natural Resource OPEN HOUSE January 14, 2003 Drop in anytime between 4 p.m. and 8 p.m. Snowcrest Jr. High School Citizens’ opinions and input are sought regarding planning for the future in the areas of drinking water, pressurized irrigation, waste water, storm water, and natural resources. We can’t afford to let the planning happen without your input! Contact Pamela Mitchell at 791-8812 or email: pam@ovba.org for more information or to submit |