Utah's unemployment rate edged up one-tenth of one percent in March to 3.5 percent, the Utah Department of Employment Security reported Friday.

But that's still well below the 6.5 percent jobless rate nationwide - unchanged from February - as reported Friday by the U.S. Department of Labor.The Labor Department said 456,000 non-farm jobs (seasonally adjusted) were added in March nationwide, way ahead of economists' predictions for the month and the highest level since October 1987, when 556,000 new jobs were created.

In Utah, about 34,300 people were out of work in March - some 2,000 fewer than the same month a year ago when local unemployment was at 4.1 percent.

Job Service said announced upcoming layoffs locally in defense, defense-related manufacturing and the computer software industries will likely push the local unemployment rate even higher in coming months, but it is still expected to remain below historic levels throughout the year.

Lecia Parks Langston, chief economist at Job Service, said she was not overly concerned at Utah's jump in joblessness.

"Utah's unemployment rate is the third lowest in the nation and registers three full percentage points below the national average," said Langston.

"From an economist's point of view, joblessness can be too low. With job growth running as fast as it is, it's important that we have a pool of temporarily unemployed workers who can fill the new jobs."

The alternative is a scarcity of labor to fill open positions. Lang-ston said Job Service has "anecdotal" evidence of such shortages cropping up for lower paying jobs.

"In other words, this slight rise in joblessness should not be a concern at all," she said.

Utah has added just under 50,000 new jobs since March, 1993, a strong expansion of more than 6 percent.

But while March job growth remained relatively robust, Langston said it appears to be slowing.

"Utah's rate of 12-month growth reached 6.5 percent in the recent expansionary period," said Langston. "Even conservative economists agree this constitutes a `boom.' But that rate of growth is rarely sustainable."

She said her main concern is with the upcoming layoffs, not because of their number but because they are mostly high-paying jobs. Those who lose them are not likely to find new jobs with matching salaries.

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Additional Information

How various job categories fared

Here are how the various job categories fared locally in March according to figures from Utah Employment Security:

Construction - Employment in Utah's "boom" industry of the '90s was up 16.5 percent over March, 1993. During the past year, construction has generated 5,700 new jobs, the fourth year of double-digit growth. Demand for multifamily units should keep the pot boiling for months to come.

Finance - The finance-insurance-real estate segment closely followed construction growth with a 14 percent gain in March over the same month last year. Financial services telephone centers spurred the growth with 5,600 new jobs.

Services - The service industry usually leads the way in job growth and March was no exception. Some 16,000 new positions have been added over the past 12 months, a growth rate of almost 8 percent. Business and computer services have led the way but should slow in May as laid-off WordPerfect workers finish their severance pay.

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Transportation - The transportation-commmunications-utilities sector added 3,200 jobs since March 1993, a 7 percent broad-based gain, except for railroads where growth was flat.

Trade - Jobs increased 11,700 positions for the year, a 6 percent overall gain. Wholesale trade jobs grew at a 4 percent pace while retail moved up 7 percent.

Manufacturing - A 5 percent gain was recorded with the addition of 5,500 jobs. Durable goods manufacturing generated most of the new positions. Trouble spots still exist in primary metals and electric machinery, both down from a year ago.

Government - Growth was just over 1 percent, slowed by losses in federal defense jobs. With new layoffs already announced, growth in federal jobs is not expected anytime soon but state and local governments expect to see moderate job increases of 3 percent and 5 percent, respectively.

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