CEOutlook 2021-Q2

Page 1

Q2 2021

These jobs represent stable, high-paying, family-supporting jobs that can help alleviate our housing affordability challenges as they continue to increase supply. This industry has met the challenges of the pandemic, overcoming frozen supply chains, price volatility on key commodities, and labor shortages to continue building Utah. Construction jobs also support adjacent industries such as travel and tourism by creating spaces for visitors and consumer economic activity. One notable project is the new Continued on page 4

CEOutlook

80.0

75.3 74.3

70.0 66.3 62.8 61.2 59.4 62.0 60.6 62.4 62.3 60.9 60.1 55.5 53.2 60.0 53.3 50.0 40.0

57.3 58.9 32.3

30.0 20.0

Optimism

4.0% 3.1% 2.9% 2.6% 3.3% 3.4% 3.2% 3.3% 3.1% 2.9% 3.2% 2.9% 2.9% 2.7% 2.6%* 3.0% 2.0% 1.0% 0.0% 0.0% -1.3% -1.0% -0.8% -2.0% -3.0% -4.0% -5.0% - 5.0% -6.0%

Concern

Consistent inmigration to Utah is catalyzing a housing and construction industry boom, and the endurance and response of our construction industry is currently Utah’s fastest growing major industry. Over the past couple of years, Utah’s construction companies have filled 13,300 new jobs.

The Salt Lake Chamber's CEOutlook Confidence Index decreased from 75.3 in 2021-Q1 to 74.3 for 2021-Q2. Year-Over Job Change

This CEOutlook shines a light on Utah’s strong rebound and shows consolidation of a robust recovery. The economic fundamentals are flashing green as industries continue full speed ahead in hiring and growth. Our workforce participation remains high with the unemployment rate at 2.6%, ranking second nationally and half the broader 5.4% U.S. rate.

Confidence Index and Job Change

Confidence Index

Derek B. Miller, President and CEO, Salt Lake Chamber

10.0 0.0

Q1

Q2 Q3 2017

Q4

Q1

Q2 Q3 2018

Q4

Q1

Q2 Q3 2019

Q4

Q1 Q2 Q3 Q4 Q1 Q2 2020 2021

*Q2 calculated on 2-year percent change

The Salt Lake Chamber’s CEOutlook Confidence Index is based on responses to the four standard questions included in each quarter’s survey (Questions 1-4). The Index can range from 0 to 100. A score below 50 indicates executives believe the economy will worsen; a score above 50 indicates a belief among executives that the economy will improve. Source: Index is produced from the Salt Lake Chamber’s CEOutlook with support from the Kem C. Gardner Policy Institute, including analysis of the employment data prepared by the Bureau of Labor Statistics.

Natalie Gochnour, Director and Chief Economist, Kem C. Gardner Policy Institute and Salt Lake Chamber Utah’s economic expansion remains on track, even as COVID-19 continues to pass from person to person. This quarter’s CEOutlook confirms that business leaders believe the worst of the pandemic’s economic impact is behind us. Both the first and second quarter confidence indices register record high levels as business leaders sense a full recovery is afoot. Their optimism tracks with the data. The most recent job report shows Utah’s two-year job growth rate of 4.2% ranks second among states and far above the -2.8% contraction seen nationally. Only four states showed positive change – Idaho, Utah, Arizona, and Montana. It’s reasonable to project that Utah will continue to be a top-performing state. Risks to the outlook remain. I’ll be watching three indicators carefully: consumer confidence, COVID-19 health outcomes for children, and price instability. We are not out of the woods yet, but Utah’s strengths, coupled with business, consumer, and employee adaptations, have kept us in a nation-leading position. It’s great to live in Utah! Second Quarter

I 2021


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CEOutlook 2021-Q2 by Salt Lake Chamber - Issuu