Utah's unemployment rate dropped to 5 percent in January, a slight decrease from the December figure of 5.2 percent, according to Lecia Parks Langston, chief economist for the Utah Department of Employment Security.
The state's unemployment rate is well below the national rate of 7.1 percent and the lowest since June 1991. However, unemployment is 0.5 percent higher than in January 1991.About 40,300 Utahns were out of work in January, 4,400 more than a year ago. "Even with the state's economic slowdown, Utah remains in relatively strong economic shape compared to the rest of the nation. Utah weathered the national downturn and cuts in defense spending well," she said.
Langston is confident Utah will continue to avoid its own recession this year. The state still manages to show one of the best economic performances in the nation, but Utah companies and Utahns will have to make some painful labor market adjustments, she said.
In the last 12 months, 16,400 new jobs were created in Utah, a 2.3 percent increase. Although the growth rate has declined significantly in the past 12 months, the state job creation grows while that for the nation as a whole declines.