Updated Economic Snapshots

New three-page snapshots contain narrative at the bottom for more perspective of the data in a monthly look at employment, unemployment, wages construction, and sales for each county in Utah. (Some data updated less frequently, as available.)

For the latest economic snapshot for your county, check out the updated files on our website for Davis, Morgan and Weber counties.

Note: refreshing browser may be necessary for current information. 

Weber County Economic Update

Weber County Ends 2014 with Strong Economic Performance

By Matt Schroeder

Weber County ended 2014 with signs of deepening economic strength and vitality. Wages, which have been slow to keep up with the rest of the recovering labor market, finally turned a corner. A considerable uptick in construction permits reveals positive expectations for housing demand. Taxable sales were up more than 5 percent with particular strength in retail markets suggesting that consumer confidence continues to build. Motor vehicle sales were particularly strong thanks in part to falling oil prices. Unemployment continues to fall and initial unemployment insurance claims are back to pre-recession levels. Employment growth was consistent and broad based. Overall, the roots of recovery appear to be firmly set in the region and Weber County’s economic performance at the end of 2014 leaves continued-optimism for 2015 as the rational expectation.

Morgan County Economic Update

Morgan County Ends 2014 with Strong Economic Performance

By Matt Schroeder

Morgan County ended 2014 on a very positive note. Employment grew at a faster rate than any other county in the state, and wages, which have been slow to keep up with the rest of the recovering labor market, picked up considerably. Taxable sales were up 26 percent. Unemployment was the second lowest in the state and initial unemployment insurance claims are back to pre-recession levels. Overall, the roots of recovery appear to be firmly set in the region and Morgan County’s economic performance at the end of 2014 leaves continued-optimism for 2015 as the rational expectation.

Davis County Economic Update

Davis County Ends 2014 with Strong Economic Performance

By Matt Schroeder

Davis County ended 2014 with healthy labor market expansion and indications of demand-side improvement. Wages, which have been slow to keep up with the rest of the recovering labor market, finally turned a corner. Taxable sales were up almost 7 percent with particular strength in motor vehicles thanks in part to falling oil prices. Unemployment continues to fall and initial unemployment insurance claims are near pre-recession levels. Employment growth was consistent and relatively broad based. Overall, the roots of recovery appear to be firmly set in the region and Davis County’s economic performance at the end of 2014 leaves continued-optimism for 2015 as the rational expectation.

Weber County Economic Update

Second quarter employment in the Wasatch Front North (WFN) region grew 2.7 percent from 2013 to 2014. The WFN increased employment at almost the same rate as the rest of the state, which grew 2.8 percent over the same period. In total, the region added 5,611 nonfarm payroll jobs year-over-year for a quarterly average of 213,346. Annual growth in the WFN slowed a bit from the 2.8 percent rate in the first quarter of 2014.

• Second-quarter total nonfarm employment in Weber County increased 2.2 percent year-over-year. Total county employment in the second quarter was 96,963, a 2,050 job increase from the same period in 2013.
• Private goods-producing employment increased 6.2 percent, or 1,070 jobs, from the second quarter of 2013. Manufacturing added 454 jobs, taking this industry’s employment from 12,361 in 2013 to 12,815 in 2014. Construction’s job total was 5,392 in the second quarter or 582 more jobs than a year earlier.
• Private service-providing employment added 1,121 jobs, a growth rate of 2 percent from the previous year. The trade/transportation/utilities and educational/healthcare/social services industries increased employment by 534 and 300 jobs, respectively.
• Government employment shrank 0.7 percent from the second quarter of 2013 to the second quarter of 2014. State and local governments added 55 and 30 positions respectively, while federal government lost a total of 226 jobs (declining 3.4 percent).
• September’s unemployment rate for Weber County was 4.1 percent. Over the last year, the county unemployment rate has fallen 0.7 percentage points. Weber County was 0.6 percentage points higher than the state average in September.
• On average, the number of initial unemployment claims filed per week in the second quarter (154) decreased by 16 claims from 2013 to 2014.  
• Second-quarter taxable sales in the county increased 5.1 percent from 2013 to 2014. In the second quarter of 2014 taxable sales were approximately $913.7 million, which was an increase of approximately $44 million from the previous year.

Morgan County Economic Update

Second quarter employment in the Wasatch Front North (WFN) region grew 2.7 percent from 2013 to 2014. The WFN increased employment at almost the same rate as the rest of the state, which grew 2.8 percent over the same period. In total, the region added 5,611 nonfarm payroll jobs year-over-year for a quarterly average of 213,346. Annual growth in the WFN slowed a bit from the 2.8 percent rate in the first quarter of 2014.

• Second-quarter total nonfarm employment in Morgan County grew 3.5 percent from 2013 to 2014. Morgan County added a quarterly average of 65 nonfarm jobs year-over-year, resulting in total employment equal to 1,943.
• Private goods-producing employment increased 4.4 percent (23 more jobs). Construction employment, the region’s largest goods-producing industry, was up one job.
• Private service-providing employment grew 7.8 percent from the second quarter of 2013, adding 68 jobs. Professional/business services increased by 33 jobs to an average quarterly employment total of 123.
• Government employment in the second-quarter declined by 26 jobs, which were all reductions in local government (most losses, 23, were cuts in the school district).  
• The unemployment rate in Morgan County was 3.3 percent in September. Since September 2013, the county unemployment rate has fallen 0.6 percentage points. Morgan County’s unemployment rate was slightly below the state average of 3.5 percent in September.
• The average number of initial unemployment claims filed per week in the third quarter of 2014 was 2 claims, approximately 1 fewer claim than the 2013 average.
• On a percentage basis, Morgan County had the fifth largest increase in second-quarter taxable sales. Taxable sales in the county jumped 12.8 percent from 2013 to 2014. Second-quarter spending was approximately $21.9 million, an increase of $2.5 million from the previous year.

Davis County Economic Update

Second quarter employment in the Wasatch Front North (WFN) region grew 2.7 percent from 2013 to 2014. The WFN increased employment at almost the same rate as the rest of the state, which grew 2.8 percent over the same period. In total, the region added 5,611 nonfarm payroll jobs year-over-year for a quarterly average of 213,346. Annual growth in the WFN slowed a bit from the 2.8 percent rate in the first quarter of 2014.

• Total nonfarm employment in Davis County increased 3.2 percent year-over-year in the second quarter. From 2013 to 2014, Davis County added 3,496 jobs, resulting in a quarterly average of nonfarm employment equal to 114,439.
• Private goods-producing employment increased 7.2 percent, or 1,340 jobs, since the second quarter of 2013. Construction and manufacturing added 870 and 444 jobs, respectively.
• Private service-providing employment added 2,190 jobs year-over-year, a growth rate of 3.3 percent. The trade/transportation/utilities and the educational/healthcare/social services industries each tallied 652 and 583 new jobs.
• Government employment shrank 0.1 percent from 2013 to 2014. Federal and local governments cut jobs, losing an average of 103 and one position respectively over the year. State government added 70 jobs over the year.
• The Davis County unemployment rate settled at 3.3 percent in September 2014. Over the last 12-months the county unemployment rate has fallen 0.7 percentage points. Davis County was 0.2 percentage points lower than the state average in September.
• On average, the number of weekly initial unemployment claims filed during the third quarter decreased by 24 claims from 2013 to 2014.
• Spending in the county was also up; second-quarter taxable sales in the county increased 7.5 percent from 2013 to 2014, significantly higher than the state average of 4.2 percent. The year-over increase in spending was about $80 million higher than last year, bringing first quarter spending in 2014 to $1.15 billion.

364 Manufacturing Reports from Economic Census Industry Series

In recognition of Manufacturing Day on October 3, the Census Bureau presents descriptions of its wide array of data products on the manufacturing sector of the economy. Additionally, statistics on all 364 industries in the manufacturing sector are now available from the 2012 Economic Census.

Click to enlarge

Data includes:

• 2012 Economic Census Industry Series
• 2012 County Business Patterns
• Annual Survey of Manufactures
• Survey of Plant Capacity Utilization
• Manufacturers’ Shipments, Inventories, and Orders (M3)
• U.S. International Trade in Goods
• Additional Economic Indicators

Also released is a county-level thematic map (right) showing the percentage of the civilian employed population employed in manufacturing jobs.


For more information including links, see the U.S. Census Bureau.

Employment by Major Industry

Employment by Major Industry (or Nonfarm Employment) is compiled payroll data for nonfarm workers. Nonfarm workers are all employees excluding government employees, private household employees, employees of nonprofit organizations and farm employees. DWS economists have broken these documents into county regions and are an important economic indicator of the current economic situation. For more: Why no "Farm" in Nonfarm Jobs?

Second quarter 2014 has been updated for counties in the Wasatch Front North region. These can be found on each county's page in the links to right, as well as below.

• Davis County
• Morgan County
• Weber County

WFN Location Quotients

In the summer issue of Local Insights we discussed the value of economic diversity and the Hachman Index (a method used to measure industry diversification in the labor market)[1]. The article states that:

The Hachman Index is derived from the weighted average of the industry Location Quotients (LQ) in a region. A LQ measures the regional concentration of employment in a given industry relative to a larger geography. As a rule of thumb, an LQ of 1.2 or higher represents an industry with a relatively high concentration of regional employment, while a score of 0.8 or lower indicates sparse regional employment… Breaking the Hachman Index into individual components provides insight into the distribution of employment in a local economy.

Figure 2 in that article resembles the charts to the right, except that the data in the article was aggregated to the regional level. Combining the employment counts for all three Wasatch Front North counties obscures the concentration of employment in certain industries at the county level. This article sheds light on the relative density of employment in each county.

When examining the three charts, note the scale on the horizontal axis. In 2012, Davis and Weber counties had very few location quotient outliers. In Davis County, six industries were within the “normal” location quotient range; in Weber County there were 10 industries with “normal” location quotients. Furthermore, the industry with the highest concentration of employment compared to national averages was public administration for both counties, registering LQs of 2.4 (Davis) and 2.0 (Weber).

In contrast, Morgan County only has three industries with LQs in the “normal” range, and the industry with the highest concentration – covered agriculture, forestry, fishing & hunting – has a large LQ of 9.7.

In Utah, there is a correlation between the size of a county’s labor force and the degree of industrial diversity in the county; in general, this means the more workers in a county the more diverse the economy of that county.  So it is not surprising that Davis and Weber counties have less variance in their respective LQs compared to Morgan County.

Understanding the relative concentration of employment by industry lends some insight into the comparative advantages of a region. In terms of the Wasatch Front North, we see that the labor economy is relatively diverse.

---

[1] Article titled: Economic Diversity in Wasatch Front North

Economic Diversity: Further Analysis of the Hachman Index

Tyson Smith, Regional Economist

In the summer issue of Local Insights we explored local area industry diversity using the Hachman Index. As stated in the article, many economists believe that economic diversification promotes stability in local markets. The article also touches on the difficulty of identifying an exact index value that denotes an appropriately diverse economy. One way to examine Hachman Index values is described below:

“It is difficult to determine exactly what index value constitutes a highly diversified region when there are large differences in total employment [among the regions]. However, if a county’s Hachman Index ranks considerably higher than its total employment count – relative to the other counties in the state – that is an indication that the county is relatively diverse. Using this method reveals that Morgan County had the eighteenth highest Hachman Index and the 25th largest employment base in the state, making it more diverse than counties of similar size. Both Davis and Weber’s index values ranked similarly to their total employment ranks of third and fourth, respectively.”

This simple comparative method highlights the correlation between the size of the workforce in a given county and the industrial diversity in that area. In general, counties with larger populations do not rely on one or two key industries for employment. On the other hand, small communities in less populous counties often exist because their region has (or had) a comparative advantage in a single industry. The relationship between employment count and economic diversity allows us to identify counties that are more or less diverse[1] than expected using the matching exercise in the chart to the right.

---

[1] Counties where the Hachman Index ranks more than two spots higher or lower than the Total Employment ranking are identified as “More Diverse” or “Less Diverse”, respectively. The "two spot" difference as a means of identifying notable incongruities does not represent a scientific methodology, it is only meant to give directional insight into the data.

Long-term Industry Projections available on the web

Job seekers who make decisions based on labor trends information are more likely to see payoff for their efforts. An important aspect of career exploration is understanding how occupations and industries are expected to change. To assist in this process, the Department of Workforce Services (DWS) produces long-term industry projections every two years for the major industry sectors in Utah, providing information on the state’s expected labor demands. The long-term projections extend ten years past the base year. Using the industry projections, DWS generates occupational projections for jobs that fall into the industry categories.

To access the most recent set of long-term industry projections, click here.

New Data Available in Utah Economic Data Viewer

The 2013, Q4 industry employment and wages data has been updated in the Utah Economic Data Viewer. Industry employment and wage data is collected through the Quarterly Census of Employment and Wages (QCEW) program. The primary source for QCEW data are the reports submitted by employers to the Utah Unemployment Insurance program.

The Utah Department of Workforce Services compiles quarterly employment and wage data for non-agricultural employers in Utah. Data is maintained at the establishment level (e.g., store, plant, or other type of permanent worksite facility). Since these establishments are assigned an industry and county code, their employment and wage data can be aggregated into common industry and county groupings for analysis purposes.

Utah Employers, Employment and Wages by Size, 2013

The Utah Department of Workforce Services compiles quarterly employment and wage data for non-agricultural employers in Utah. Data is maintained at the establishment level (e.g., store, plant, or other type of permanent worksite facility). Since these establishments are assigned an industry and county code, their employment and wage data can be aggregated into common industry and county groupings for analysis purposes.

Employment and wage data for Utah’s non-agricultural employers are categorized in this publication by employment size for the month of March in each of the designated years. Grouping data by this criterion provides a useful tool to analyze the characteristics of Utah employers. For example, general trends of the size of Utah employers and employment concentrations by employer size class can be observed. Wage levels for large, medium, and small firms can also be evaluated.

In this publication, data is presented for both establishments and firms. The term "establishment" is generally defined as a specific physical worksite for an employer. For most employers, this is the actual street location at which business is conducted. For others, with no permanent worksite (such as salespeople, factory representatives, or distributors) it is the location from which they conduct their business (sometimes even residences).

For an overview of this publication and a look at your county, click here.