Tight labor market strains Utah’s small businesses – Salt Lake is magnet for small biz

A tight labor market is starting to strain Utah’s small businesses, according to an economic report released Tuesday.

The Zions Bank Small Business Index fell to 112.9 in July, down from a revised 114.2 in June. The index measures business conditions from the viewpoint of the Utah small-business owner or manager.

A higher index number is associated with more favorable conditions for Utah’s small businesses. The index uses 100.0 for calendar year 1997 as its base.

"The index went down a little bit, based on Utah’s unemployment rate, which went from 4.9 percent to 4.7 percent," said Jeff Thredgold, economic consultant to Zions Bank. "That suggests tighter labor markets, and frustrations for employers in filling positions or retaining people."

Utah’s unemployment rate is the most heavily weighted component of the Zions index.

Total employment, another factor affecting the index, rose by an estimated 36,500 jobs, or about 3.3 percent, during the past 12 months. That compares to a revised gain of 36,100 jobs in the prior year-over period.

Job gains have a positive impact on the Zions index, because they suggest that people will make — and spend — more money.

"We are now No. 4 in the country in terms of job growth," Thredgold said. "Utah’s job growth rate of 3.3 percent during the last 12 months is fourth only to Nevada, Arizona and Idaho in terms of percentage jobs gains. At one point, we were second to Nevada. So we’ve slowed a bit, which we thought we might."

By Jenifer K. Nii
Deseret Morning News

Full Story: http://deseretnews.com/dn/view/0,1249,600154681,00.html

*****

S.L. is magnet for small biz

Report says 72% of Salt Lake County companies employ 9 people or less

By Matt Canham
The Salt Lake Tribune

John Winders creates gourmet ice cream in a small South Salt Lake City factory, flavors like blueberry fig and peanut brittle crunch which are scooped into cones by Kristin Johnson at events like the Farmers Market. Together they are the sole full-time employees of Spotted Dog Creamery, one of the 700 companies with less than five employees that got its start during Utah’s recent recession.

In fact, Salt Lake County is a magnet for small businesses, which helps explain why it ranks 42nd among all U.S. counties when it comes to sheer number of companies, according to a U.S. Census report released Monday. The report, detailing business patterns for 2003, also pegs Salt Lake County as 44th in average annual pay.

Full Story: http://www.sltrib.com/business/ci_2927660