Economic Snapshot – July 2020

The emerging economic recovery continued to gain steam in June, as the U.S. economy gained 4.8 million jobs and the unemployment rate dropped to 11.1%. The monthly job growth is the largest on record, dating back to 1939. Most sectors grew month over month, with leisure and hospitality (+2,088,000); trade, transportation, and utilities (+903,000); and education and health services (+568,000) leading the way. Only the natural resources and mining (-10,000) sector lost jobs month to month. Wage growth showed lower income workers returning to work, lowering average month-to-month wage growth by 1.2%. While the economy still has a long way to go, recent employment data provides early evidence that the green shoots of recovery are now growing. Unfortunatley, the recent resurgence of Coronavirus cases may threaten the economic recovery, just as it begins to accelerate. 

After a rough April, Utah’s economy bounced back in May, adding 41,400 jobs month to month. Despite May job gains, the state still lost jobs year to year, albeit at a nationally low rate of 4.8%. Utah’s unemployment rate also improved in May, dropping to 8.5% – the second lowest rate in the nation. Utah lost 75,000 jobs over the past year, with only the construction (+8,000) and financial activities (+500) sectors gaining jobs. Leisure and hospitality (-42,100); government (-16,000); and professional and business services (-7,800) lost the
most jobs year over year. Housing price growth continues at a rapid pace, rising 6.1% year over year. 

After a rough April, Idaho’s economy started to recover in May, adding 24,300 jobs month to month. However, the state’s job market has not fully recuperated, with current employment 5.9% lower than it was at the same time last year. Idaho’s unemployment rate dropped below its Great Recession high in May, registering at 8.9%. Idaho lost 44,500 jobs over the past year, with only the construction (+1,500); financial activities (+1,100); and mining and natural resources (+100) sectors gaining jobs. Leisure and hospitality (-22,200); education and health services (-7,600); and government (-7,500) lost the most jobs year over year. Idaho housing price growth remained unchanged and the highest in the nation at 9.8%.