18 Why has the gap gotten smaller? The private sector has had to increase wages to attract and retain employees. How small is the gap? The premium used to be 10-23% higher for production and nonsupervisory employees within the construction industry. Currently, it is less than 18%. Taking a broader view of the gap, it used to be 9-12% for all employees, but now it is less than 12%. According to Ken Simonson, uncertainty about the future may result in a slower economic rebound. Cost and supply shortages can lead to project deferrals, and even though the infrastructure bill will bring new funds to Utah, it will take time to award those funds to individual projects. He expects a permanent shift from retail distribution to e-commerce, increased focus on green energy accompanied by a reduction in drilling and pipeline construction, and more specialized building for health care. He thinks there will be fewer hospitals and nursing homes. Other long-term changes are not yet clear. What are the reasons for Utah’s success? Natalie Gochnour, the associate dean and director of the Kem C. Gardner Policy Institute, has said several factors are responsible: • Demographic cushion: According to the 2020 census, Utah is growing. Between 2010 and 2020, the percent increase in Utah was 18.4%. The other fastest-growing states were Idaho (17.3%), Texas (15.9%), North Dakota (15.8%) and Nevada (15.0%). Although the state’s population change was less in 2020 than in 2019, the 2020 increase of 40,508 was still good. The lowest year was 4,000 in 1964. (Numbers about population changes are from the Utah Population Estimates Committee and the Utah Population Committee.) • Youthful workforce: According to the 2019 American Community Survey 5-Year Estimates collected by the U.S. Census Bureau, the median age in Utah is 30.8. That’s good because young people tend to be healthy, inexpensive to insure and tech-savvy. The highest median in the nation belongs to Maine (44.7). Florida’s median is 42. According to the 2010 census, looking at Utah’s median age by county, the centralsouthern part of the state tended to have the highest medians. • Location: The USDA Economic Research Service and Kem C. Gardner continued from page 17 Policy Institute have found that most people like sunny, warmwinters, temperate summers and low summer humidity. They also want topographic variation and water areas. Like most of the western half of the U.S., Utah’s score is above average or high on all these measures. Utah is the Crossroads of the West and has access to four interstate highways: I-15, I 70, I-80 and I-84. The state also offers substantial amenities: the Mighty Five national parks, 41 state parks, sports teams (the Utah Jazz, Real Salt Lake and the Utah Grizzlies), cultural events such as those presented by the symphony, many outdoor activities and a vibrant capital city. • Fiscal responsibility: Utah has a balanced budget, a line-item veto, a rainy-day fund, a two-year fiscal note process and a triple-A credit rating. The state also limits appropriations. • Business climate: The number of state administrative code regulations is comparatively small. California has 399,556. Utah ranks 15th in the nation with 91,517, and Idaho ranks first with 39,077. • Social capital: The Joint Economic Committee, whose ranking member is Senator Mike Lee, has 32 measures for social capital. The committee defines social capital as a web of social relationships that help people pursue joint ventures. Utah’s score, 2.08, is the highest in the country. States in the U.S. are divided into three categories: large (the first 16 states), medium (17-33) and small (34-50). Utah used to be listed with the small states because it was number 34. Now, ranked 30th, the U.S. Census Bureau currently considers Utah to be a midsized state. Despite Utah’s successes, though, Utah has not escaped the challenges facing the entire country. Natalie lists the following growing pains and challenges: • Economic performance is uneven and will continue to be for some time. Economists are talking about inflation for the first time in a long time, and
RkJQdWJsaXNoZXIy MTIyNDg2OA==