Economic Snapshot – August 2020

The U.S. economy continued to grow in July, although at lower levels than the significant growth seen in May and June. The labor market added nearly 1.8 million workers, while the unemployment rate dropped to 10.2%. Most sectors grew month over month, with leisure and hospitality (+592,000); government (+301,000); and trade, transportation, and utilities (+291,000) adding the most jobs. Only the information sector (-15,000) and natural resources and mining (-7,000) lost jobs month to month. In normal times, this would be considered a blockbuster report, but after the crushing loss of more than 20 million jobs in April, the economy still has a long way to go to dig out of its current hole. Even with this strong report, nearly 13 million people remain unemployed in America.

Utah’s economy continued its comeback in June, with the state adding 35,600 jobs month to month. Although the state added jobs month to month, the state still lost jobs year to year, albeit at a nationally low rate of 2.8%. Utah’s unemployment rate also improved in June, dropping to 5.1% – the 2nd lowest rate in the nation. Utah lost 43,100 jobs over the past year, with only the construction (+8,000); trade, transportation, and utilities (+1,400); and financial activities (+500) sectors gaining jobs. Leisure and hospitality (-32,400); professional and business services (-8,400); and government (-7,600) lost the most jobs year over year. Housing price growth shows no signs of slowing down, growing 6.5% year over year.  

The Idaho economic recovery continued in June, with the state’s labor market adding 32,800 jobs month to month. However, Idaho’s employment has not fully recovered and is still 3% lower than it was at the same time last year. Idaho’s unemployment rate dropped below 6% in June, registering at 5.6%. Idaho lost 44,500 jobs over the past year, with only the trade, transportation and utilities (+2,600); financial activities (+2,100); and construction (+1,300) sectors gaining jobs. Leisure and hospitality (-10,600); education and health services (-5,000); and other services (-4,700) lost the most jobs year over year. Idaho housing price growth was the highest in the nation at 10.9%.