Utahns' average weekly wage was more than 20 percent below the national average in the first quarter of 2006, ranking 40th among the states and lower than all but one of its neighbors, according to a new report from the U.S. Labor Department.
However, the Labor Department found, Utah ranked 10th in the nation when measuring the year-over percent change in average weekly wages.
"The state is actually reporting faster wage growth over the year" than most of the nation, said Linda Nickisch, an economist with the Labor Department's Bureau of Labor Statistics. "Wages are growing faster in Salt Lake County and in the state as a whole, and that part is really good."
The BLS computed the average weekly wage by dividing the total quarterly payroll of employees covered by unemployment insurance programs by the average monthly number of employees, and then dividing that number by 13, the number of weeks in a quarter.
The District of Columbia claimed the top spot, with an average weekly wage of $1,371. South Dakota's $581 average weekly wage landed it 50th.
Among Utah's immediate neighbors — Arizona, Nevada, Colorado, Wyoming and Idaho —all but the Gem State reported higher average weekly wages, the BLS reported. Colorado was 11th, with an average weekly wage of $858. Arizona ranked 21st, with weekly wages at $767, followed by 22nd-ranked Nevada at $764 and 37th-ranked Wyoming at $667. Idaho, ranked 47th, reported an average weekly wage of $609.
Utah's average weekly wage of $660 was 21.2 percent below the national average, the BLS reported. The state's highest-paid county, Salt Lake County, reported an average weekly wage of $744, which was 11.2 percent below the national average. However, it grew 9.4 percent compared to the first quarter of 2005.
Davis County wages grew 6.9 percent. Its average weekly wage was $635 during the first quarter of 2006. Utah County reported a $589 average weekly wage, which was $10 better than Weber County's.
Mark Knold, senior economist at the Utah Department of Workforce Services, said two main factors may explain Utah's results: the number of part-time workers factored in, and the state's young population.
"Utah leads the nation in part-time employment," Knold said. "Twenty-five percent of our employment is part-time, according to the BLS. That factor weakens our average wages."
The second factor is a reflection of "who we are," Knold said.
"We're younger than the rest of the nation, and who makes more money? Older workers or younger workers?" he said. "Older workers, because of experience, and tenure and so forth."
According to Knold, 47 percent of Utah's labor force is 35 years of age and younger. No other state comes close, he said.
"So, you'll find that the baby boomers have gotten older and dominate the labor force nationwide, but they don't here," Knold said. "The younger workers dominate here."
And that isn't likely to change much, he said.
On the plus side, Knold said the BLS rankings by percent change in wages is a reflection of Utah's strong economy compared to a weaker national economy.
Which, Nickisch agreed, speaks well of the state's trajectory.
"The top 10 ranking is a good, positive sign," she said. "It's saying a lot. It's saying that wages are growing, and relatively fast."
E-mail: jnii@desnews.com