Rise in Utah bankruptcies outpaces U.S. gain

Bankruptcies soared 27 percent in Utah the first nine months of the year, outpacing the U.S. gain in a sign that thousands of families continue in their struggle to throw off the devastating effects of the recession. So far this year, 13,603 Utahns and dozens of the state’s businesses have declared themselves insolvent in a bid to gain relief from what for many was overwhelming debt and too little income. Salt Lake Tribune

Utah tops Forbes list for business

Utah has claimed to the top spot in Forbes magazine's annual ranking of "The Best States for Business and Careers." The Beehive State pushed Virginia out of the top slot — where it had been for four years running. According to local business insiders, this recognition could mean a great deal as the state works to attract more companies that bring with them more jobs and economic development. Prior to this most recent list, Utah had consistently ranked in the top five for several years, but reaching the top is a major milestone, said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah.

The magazine's "Best States" ranking measures six categories for business, including costs, current economic climate, growth prospects, labor supply, quality of life and regulatory environment. Deseret News

Most central Utah economies are improving

What does the best local economic indicator say about the economies of central Utah? Recently released employment data for the second quarter of 2010 shows that most of these economies are on the mend and one is even growing.

Wayne County saw its nonfarm job base increase by 2 percent between June 2009 and June 2010. Like other tourism-dependent economies in the southern part of the state, Wayne County seems to be entering the business expansion cycle earlier than some of its larger neighbors.

However, while neither Millard or Sevier counties added jobs over the same time period, they are certainly poised to do so quickly. Millard County's employment held steady between June 2009 and June 2010 and Sevier County's employment was down a mere 0.2 percent.

Further behind in the recovery race, both Sanpete County and Piute County continue to show notable employment declines. Sanpete County seems stalled for the moment in a jobless recovery with declines holding steady rather than getting smaller. In small Piute County, growth and contraction are often dramatic, just because of its small employment base. Such is the case with the county's current 10-percent decline.

For more detailed information on employment growth in the second quarter go to: jobs.utah.gov/countyinfo. Select your county, then the "Nonfarm Jobs" link on the right-hand side of the page.

Job growth returns to some counties in southwestern Utah

I'm always preaching that the best economic indicator on the local level is the year-to-year change in nonfarm jobs. Now that preliminary data is available for the second quarter of 2010, it would seem appropriate to exam how where local economies are on the road to recovery.

Yes, Virginia, there is job growth out there. In southwestern Utah, two counties--Garfield and Kane--showed year-to-year employment growth as of June 2010. Both these counties maintain economies heavily dependent on tourism. And, indeed, both counties are showing substantial employment growth in leisure/hospitality industry employment. Overall, employment is up 1 percent in Kane County and a whopping 6.5 percent in Garfield County.

The two most populous counties--Washington and Iron--do continue to show year-over job losses. However, in both cases, the employment losses keep getting smaller and smaller. As of June 2010, Iron County's employment was down less than 3 percent compared to a year earlier. Washington County's jobs decreased 3 percent in the same time period and survey data for later in the summer shows employment declines have moderated to roughly 2 percent. In particular, Washington County is beginning to see employment gains in the professional/business services industry. Since this industry includes temporary agency, its expansion is typically a precursor to employment expansion in other areas. If no employment setbacks occur, Washington County is poised to experience some job growth by year-end.

Only in Beaver County has employment taken a nose dive. But, Beaver County is a special case. Construction on a wind farms infused large numbers of construction jobs into the county's labor market and once the construction ended, so did the jobs. In addition, a temporary mining closure contributed to Beaver County's 14.6 percent drop in jobs.

For more detailed information on employment growth in the second quarter go to: jobs.utah.gov/countyinfo. Select your county, then the "Nonfarm Jobs" link on the right-hand side of the page.