GETTING TO KNOW THE BEEHIVE STATE

By The Kem C. Gardner Policy Institute at the University of Utah

Non-Utahns will know Utah for many things — the Mormon pioneers who settled here, a large interior salty sea, world-class skiing, extraordinary red rock national parks, and even the Utah Jazz. Utah’s distinctive demographic profile is probably less familiar, but it’s the most unique state in the nation by many measures. Utah is young, urban, growing fast, and becoming more diverse every day.

The 2020 Census confirmed Utah’s status as the fastestgrowing state in the nation. With an 18.4% decadal growth rate, Utah outpaced national growth by a factor of 2.5. Over the past decade, Utah climbed from the 34 th largest state to the 30 th largest state, a surprising four-state jump. No other state increased its ordinal ranking as much as Utah did.

Utah’s growth is commonly attributed to its high fertility rate, which is certainly on point, but becoming less relevant each year. At 1.95, Utah’s total fertility rate is below replacement level and no longer the highest in the nation. Both South and North Dakota currently have higher fertility rates than Utah.

Even with a declining fertility rate, Utah remains the nation’s youngest state, with a median age in 2020 of 31.5. This youth provides the state with many economic advantages relative to other states, including a growing, healthy, low-cost, and tech-savvy workforce.

Utah continues to change at a rapid pace. Net in-migration has occurred in 29 of the past 31 years, including the secondhighest net in-migration on record in 2021. This in-migration is not surprising given Utah’s nationally ranked economy. Utah has led the nation in the rate of job growth over the past two years and is one of only four states that can claim an increase since November 2019. Idaho, Texas, and Arizona are the other three.

Much of this employment growth has come from Utah’s red hot tech sector, known as “Silicon Slopes,” which increased at 3.5 times the national rate of tech-sector employment growth from 2008 to 2018. The growth of Utah’s service sector over the past two decades including, among others, health services, life sciences, and travel and tourism, has created an economically diverse economy. Utah’s economic structure now ranks among the most diverse in the country.

In-migration and higher birth rates among the non-white population contribute to a rapidly diversifying state. Utah’s non-white Hispanic population now makes up 15% of the state’s total population. It surprises many people to learn that Utah now ranks as the 34 th most racially and ethnically diverse state and has more racial and ethnic diversity than Indiana, Minnesota, Missouri, Ohio, and Wisconsin.

Utah continues to urbanize, now ranking as the 8 th most urban state in the country. The five contiguous and largest counties in northern Utah comprise 75% of the state, which means most

Utahns live in the Greater Salt Lake Area. This concentration of people means Utah experiences some of the same urban benefits and challenges as larger states, including homelessness, congestion, air pollution, pockets of poverty, and crime.

Complementing Utah’s distinctive and changing demographics and thriving economy, the state government manages its affairs prudently. Utah balances its budget, adheres to a statutory appropriation limitation, gives its governor line-item veto authority, and saves money for a “rainy day.” Today, Utah’s budget reserve accounts tally approximately $1.2 billion, or about 10% of state funds. Not surprisingly, the state receives a AAA bond rating from all three major credit-rating entities.

These economic, demographic, and social characteristics are why Utah’s favorably positioned to prosper in 2022 and beyond.