Tuesday, October 18, 2016

Kane County Economic Update

Kane County job growth eased back a bit in second quarter, but still remained moderate. Job losses in a few industries cooled overall expansion. Despite employment expansion and the lack of unseasonal unemployment insurance claims activity in the first half of the year, joblessness edged up slightly during spring and early summer as workers entered or reentered the labor market. However, joblessness has retreated in recent months. Nonresidential construction permitting has surged in 2016, while the value of newly permitted homes slipped. However, a good labor market performance combined with strong sales expansion points to a healthy Kane County economy.

  • Kane County’s nonfarm employment increased by 2.6 percent between June 2015 and June 2016, adding nearly 100 net new jobs. 
  • The major industries were split into job-gaining and job-losing camps with mining, construction, manufacturing and financial activities making the strongest games. 
  • The largest job –losing industries included leisure/hospitality services and government. 
  • As in many Utah counties, joblessness in Kane County has crept up in spring and early summer only to decline in recent months. 
  • At 3.8 percent (August 2016), the county’s unemployment rate remains low. 
  • First-time claims for unemployment insurance seem to be following a seasonal pattern with no cyclical disturbances. 
  • The seasonal leisure/hospitality services industry has generated the highest number of new claims so far in 2016. 
  • However, construction, retail trade and mining also showed a significant number of claims. 
  • After a lull in wage growth earlier in the year, Kane County produced a strong 4.6 year-to-year change in its average monthly wage in second quarter 2016. 
  • The permitting of hotels/motels, a professional building and a retail establishment helped drive up Kane County nonresidential construction values for the first eight months of 2016. 
  • However, while the number of newly permitted home is up, the value of those permits dropped substantially from 2015. 
  • Gross taxable sales jumped up 10 percent between the second quarters of 2015 and 2016. 
  • A dramatic increase in sales in the accommodations industry proved the primary factor in this very strong expansion.