While the unemployment rate for Utah dipped by one-tenth of a percentage point in July, Tooele County’s unemployment rate for the month remained steady at 5.2 percent, the same as June.
“I really don’t expect a lot of change in Tooele County’s unemployment over the next year or two,” said James Robson, regional economist for the Department of Workforce Services.
The state’s unemployment rate for July 2013 was 4.6 percent and the nation’s July unemployment rate was 7.4 percent.
Tooele County has seen a reduction in jobs in the professional services sector, which is the sector that includes workers at Deseret Chemical Depot and its contractors, along with a reduction in federal and local government employees, according to Robson.
“There has been some increase in other sectors such as construction and leisure and hospitality,” he said, “but not enough to make up for the losses in government and professional services.”
The total non-farm jobs in Tooele County in July 2013 dropped by 335 compared to July 2012, a 2.1 percent reduction. This is the ninth consecutive month that employment in Tooele County has contracted.
The unemployment rate in the county over the last nine months has trended downwards, despite the loss of local jobs because more people are finding work in other counties.
“Tooele County has the advantage of being part of the larger Wasatch Front labor market,” said Robson. “While Tooele County’s job market is waiting to recover, the labor force in Tooele County can take advantage of work in other counties.”
In Salt Lake County, jobs in July 2013 expanded by 3.2 percent, which created 19,377 jobs.
The closure of Deseret Chemical Depot, the loss of federal jobs, the effects of sequestration, and Tooele County’s financial struggles are all factors that may have contributed to the county’s stagnant unemployment, according to Robson.
“There have been some layoffs already as a result of the DCD closure and there are more to come,” he said. “While those workers have had time to prepare for the closure, it remains to be seen what effect removing that many jobs and the income that floated around the community from them will have on employment.”
Likewise, Robson is concerned about the effects that sequestration and the future uncertainty about the federal budget may have on Tooele County.
“The federal government is a big employer in Tooele County,” he said. “It is hard to imagine that you can lower the income of a lot of workers by 20 percent and not see some kind of effect.”
There are a few encouraging signs in some economic indicators in Tooele County, according to Robson.
The number of initial claims for unemployment benefits in the county spiked in June 2013 but they have now fallen to the same level as the past two years, he said.
The number and total value of building permits is also up, indicating there is still is some growth occurring in the county, according to Robson.
Comparatively, Tooele County’s July 2013 unemployment rate places it in the middle of Utah’s counties.
Out of 29 counties, 13 had a July 2013 unemployment rate lower than Tooele County, The lowest rate was in Uintah County with 3.5 percent.
The county with the highest unemployment rate in July 2013 was Wayne County at 12.2 percent.
Historically the current unemployment rate of 5.2 percent is lower than average. The average monthly unemployment rate for Tooele County since January 1990 is 5.4 percent.
The 5.2 percent unemployment rate for June and July is also Tooele County’s lowest monthly unemployment rate in five years. In October 2008 the county’s unemployment rate dipped to 3.6 percent.
“Tooele is a hard county to measure,” noted Robson. “But I have a hard time seeing unemployment reducing until something changes and things improve.”