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Show Gloomy Picture Guv Addresses Chamber S By GARY R. BLODGETT BOUNTIFUL Gov. Scott Matheson painted a "gloomy picture" of today's economy, eco-nomy, but told Bountiful Area Chamber of Commerce members that the future "looks very bright." "IT'S NOT a very bright outlook for the near future, but I sincerely believe that the distant future several months from now will be un-precidented un-precidented in Utah's history for economic boom," the governor said at the Chamber's monthly membership meeting. "There's no question that we are in a serious recession in this state and the entire nation, but that doesn't mean that we can't have a positive outlook on the future. As bad as things appear here at home, they are much worse elsewhere in the nation." THE GOVERNOR said unemployment at the end of March was 6.8 percent in Utah only one-tenth percentage point below the all-time high. "And it's going to get worse before it gets better," the governor said. "Unemployment will likely reach between 7.5 and 8.5 percent by midsummer and then hopefully will taper off considerably. We're not out of the woods yet, but we are about to turn the corner." HE SAID Utahns are feeling the crunch more this year than in past periods of recession. "There are more layoffs now than before and it appears that many of those being laid off will not be rehired," he said. Kennecott has laid off more than 1,000 employees em-ployees and Geneva Steel has cutback more than 1,300, the governor noted. "Many of these will not be rehired, at least not for a while , as the companies attempt to recoup from the recession losses." . THE GOVERNOR said this nation is on the threshhold of economic disaster unless adjustments adjust-ments are made in the national budget next fiscal fis-cal year. "It's going to take a tremendous bipartisan bi-partisan effort to change the trend of the nation's na-tion's economy. "The key to a successful turnabout lies with the president and the speaker of the House, and both are a bit stubborn," he said. "But fortunately fortun-ately they are softening up a bit and changes are being made. Economic improvement will take several months, but there is hope." GOV. MATHESON said Utah has a lot going with its diversified base of economics. He praised the state's improved tourism program, noting that Utah now receives nearly $1 billion tourist trade annually twice as much revenue as all manufacturing and mining combined. :: Industry, too, is on the upswing with 35 companies com-panies expanding or starting new'companies last year and creating new jobs for more than 8,500 GOVERNOR MATHESON employees. "BUT WE need more than 30,000 new jobs annually just to stay even with the high school and college graduates looking for employment," employ-ment," said Gov. Matheson. "We are making inroads with new industries but must find even more ways to entice and keep big businesses in the state." Then looking to the brighter side, the governor gov-ernor emphasized that as bad as things may -appear , Utah is among the most solid economically economic-ally of any state. "WE HAVE a diversified market, not like Oregon which depends so heavily on lumber," said the governor. "Despite the recession, revenues re-venues in the state are up 1 1 .2 percent over one year ago." He noted that Utah will close the present ; fiscal year with a small surplus "something very few states will be doing this fiscal year." THE GOVERNOR emphasized that Utahans do have a "bright future" to look forward to. "When the economic trend turns the corner, as it will sometime in the future, growth in the state especially in energy resources will reach a cycle unprecidented in Utah's economic history. "We do have a lot to look forward to in Utah," the governor stressed. |