Job Hunt Should be Easier in '06

By: Liz Lawyer from the Utah Statesman

 

Issue date: 1/25/06 Section: Campus News

 

Utah's economy is up and running after several years of floundering, according to a report issued recently by the governor's office.

 

The report showed that last year, all job markets gained and immigration to Utah increased. Construction has grown in both the private and commercial sectors. Students will be entering a faster-paced environment than those who have graduated since Utah's economy began to slow in 2001.

 

The number of new jobs opening up in Utah is higher than the national average. Job growth in Utah in 2005 was 3.5 percent compared to the national rate of 1.6 percent. That means 43,000 new jobs were created. In 2006, Utah's growth rate is expected to hold fairly steady at 3.3 percent.

 

As a result of the swelling job market, there has been a rise in immigration to Utah. Last year Utah's population grew 3.2 percent, making it the fifth-fastest-growing state in the nation. The nation's overall population growth rate was only 0.9 percent.

 

According to the 2006 "Economic Report to the Governor," unemployment rates in Utah decreased despite a growing labor force, which was attributed to the "improved employment situation."

 

The report said all industries have made advances, including construction, tourism, exports, energy and agriculture. Hill Air Force Base, located north of Salt Lake City, was reviewed by the Defense Base Realignment and Closure Commission, but survived the examination with "minimal impacts." Hill AFB is the largest employer in the state, employing almost 23,000 military personnel and civilians. Its loss would have been a large blow to the economy.

 

As Cris Lewis, a professor of economics at Utah State University, put it, "The market's working."

 

 

 

Students entering the job market this year will benefit from the best economy Utah has seen in years. A fast economy is good news for graduates. More jobs mean more options and more demand for applicants.

 

According to a report issued by the National Association of Colleges and Employers, it is projected that employers will hire 14.5 percent more recent college graduates this fiscal year (Sept. 2005-Sept. 2006) than in the previous year.

 

Financial activity was the slowest industry to recover in 2004 according to the governor's report, but real estate activity drove the sector to a 2.2 percent growth rate.

 

Professional and business services, the sector that employs many with bachelor's degrees and higher, including accountants, engineers, computer programmers, researchers and others, grew 3.9 percent, adding 5,400 new jobs.

 

For students planning on graduating in May, the time to start looking for that first job is now. Some sectors, such as accounting firms, have already finished their recruiting in the fall.

 

Randy Jensen, a career adviser at Utah State University, said that several years ago people were taking whatever they could get. Now those who aren't happy where they are may begin looking for more satisfying jobs. This mobility can cause a bit more competition for the most desirable openings.

 

Jensen said students' chances at landing a good job are high, but just getting a degree isn't enough anymore.

 

"The old expectation is that if you finish your degree, you'll get the job you want," he said. "Those days are gone. Students must combine experiences with education to get jobs."

 

 

 

The governor's report states that due to low interest rates and the growing economy, residential and commercial construction skyrocketed to a record high of $6.4 billion, a 25 percent increase from 2004. The number of new residences was 26,800.

 

Real estate prices have gone up with the rest of the state's economy. In Cache Valley alone, the price of single-family homes went up 8 percent in 2005, according to information collected by Coldwell Banker Gold Key Realty in Logan.

 

"Utah housing prices are still below those in California, which is what we look at," Lewis said. The governor's report showed that California real estate is decreasing in value while Utah's is increasing.

 

Lewis said the result of the rise in prices is more developers are buying up land and putting houses on it. Such an increase in supply will moderate the mounting prices.

 

The number of new housing permits this year is expected to exceed this year's number, which reached a record high in 2005 of 26,800 permits.

 

 

 

Despite the positive signs for the future …

 

Although the economy has begun to turn upwards in the last two years, the bankruptcy rate in Utah hit an all-time high in 2005. Some have blamed a new national bankruptcy law for the increase. However, the rate should not be expected to improve because of the new law, said Jean Lown, a professor in family, consumer and human development at USU who has studied bankruptcy rates.

 

"People think the good economy will trickle down to them," she said. "Utah hasn't changed its minimum wage since 1997. You can't live on $5.15 an hour."

 

Lown said she thinks just changing bankruptcy rules is not going to have an impact. The attitude of entitlement that has become prevalent leads people to live beyond their means.

 

"People want it all and lenders are willing to give it to them," she said.

 

There has been what Lown called a payday explosion. Payday loan stores can be seen everywhere and it's a very profitable business. Lenders charge high interest rates and are not as selective as they used to be about whom they lend to, Lown said. Bad credit, no credit - they don't care, as long as they make a profit. She said these lenders cause a strain on the economy and are outlawed in other states, including New Jersey, to protect consumers.