The latest monthly employment figures from Utah’s department of workforce services suggest the state’s job market is still holding up rather well despite the turbulent financial markets that have stressed the national economy. The growth rate still managed a tiny registering in positive territory — at 0.1 percent as compared to the previous September. Unemployment sits at 3.5 percent in the state, compared to 6.1 percent for the national average. While unemployment claims have increased significantly, they are coming off record-low levels of unemployment — suggestive that they are not necessarily out of line historically but still worrisome.

Even though job growth has stagnated, Mark Knold, senior state economist, says there’s justification for taking the news in its positive vein. “That is better than the national picture, where the economy is into its sixth month of declining employment. Utah’s unemployment rate still remains low, showing that our labor market is not in a stressful situation,” he says. “Keeping people employed is the tonic that will keep the Utah economy from slipping over the edge and into an environment that will feel and resemble the national recession.” However, he cautions that the next few months may be difficult even given Utah’s comparatively strong position.

The state downturn in residential construction may also have peaked in terms of its rate of decline. However, the industry — which, by far, is the biggest factor in the weakening of Utah’s job market — will still shed jobs but at a much slower rate than in the last year. Knold also doesn’t expect residential construction to start rebounding until at least 2010 and commercial construction also will likely slow in the wake of the tightened credit markets.

While growth in financial services industry jobs has essentially ground to a halt, even in Utah, the state is still in comparatively good shape. Morgan Stanley has a substantial presence in Utah and it has been identified as one of the nation’s nine solidly healthy banks qualifying for the U.S. Treasury’s stock buying program as announced by Treasury Secretary Hank Paulson. Morgan Stanley’s stock rose 87 percent yesterday on news that an agreement was reached for the Japanese Mitsubishi UFJ bank to invest $9 billion in the American institution. On the other hand, Knold notes that other housing-related sectors including title companies, mortgage lenders, and real estate companies are going to be stressed until the housing prices find their floor.

Indeed, the challenge to maintain the current employment levels will be significant, Knold explains, as consumers are faced with decisions about spending and lifestyle changes. He admits that it remains difficult to make any predictions with a reasonable expectation of certainty.

The one area where Knold feels confident is the state’s healthcare industry, which has enjoyed annual growth rates of four percent or more in the last decade. “This industry didn’t even flinch during the dot.com recessionary downturn of several years ago, and unless something fundamental changes (and that is a remote possibility considering the current economic picture), this industry is expected to make it through this downturn with flying colors,” he adds.