What's Trending in Utah's Economy? Kem C. Gardner Policy Institute examines where we've been and where we're going
T
he Kem C. Gardner Policy Institute at the University of Utah prepares economic, demographic, and public policy research that helps Utah prosper.
TRENDS TO WATCH We live in a period of rapidly accelerating change. Technological advances, globalization and social shifts are altering the ground beneath our feet. In Utah, changes in demographics, debt levels, living preferences, urbanization, diversification, and other factors present opportunities and challenges.
AUTOMATION Automation has continued to alter the economic landscape. A recent analysis by the Utah Department of Workforce Services showed that the same number of Utah workers is now producing twice the value of product, a stunning rise in productivity. Complementary research prepared by the Kem C. Gardner Policy Institute revealed that Utah’s manufacturing sector is less vulnerable to imports due to advanced manufacturing. For this reason, Utah manufacturing jobs increased by nearly 6 percent since 1995, while the United States lost nearly 29 percent over the same period.
MANUFACTURING EMPLOYMENT PERCENT CHANGE 1995 – 2015: SELECTED STATES
20
LIFE IN UTAH 2018 | SLCHAMBER.com
GLOBALIZATION What has been the impact of globalization in Utah? Recent analysis by the Kem C. Gardner Policy Institute concludes that the impact of globalization has been widespread and nearly all positive. A large reason for Utah’s international success is due to advanced manufacturing in the state and its relative immunity to offshoring. Utah also has a great need for labor to support our growing economy. Immigrants, rather than displacing local workers, have been a welcome source of labor supply. Data on Utah’s foreign born, refugee resettlement, international travel, and international students also reinforce the positive economic impacts of the cross-border movement of goods and people. On the whole,
the Utah economy is larger and more prosperous because of globalization.
DEMOGRAPHICS Demographers at the Kem C. Gardner Policy Institute project Utah’s population will increase from approximately 3 million in 2015 to 5.8 million in 2065. Nevertheless, growth rates are projected to decelerate over the next 50 years. Utah’s fertility rates are at a historical low. Moreover, people are living longer. This means that Utah’s median age is climbing as our population gets older each year. This will have far reaching implications for the state. Transportation, housing, health care, and the economic consequences of an aging population will all have to be
UTAH'S FERTILITY RATE IS AT A HISTORIC LOW