Utah companies scramble to hire workers

Utah's economy added 51,700 jobs in the year that ended May 31, surpassing the 50,000 mark for the first time in 10 years, the Utah Department of Workforce Service reported Tuesday.

With a 4.5 percent job growth rate, Utah remains among the five fastest growing job markets in the nation, but employers are beginning to feel the pinch as demand for workers outstrips supply. Utah's unemployment rate dropped from 4.4 percent in May 2005 to 3.5 percent in May 2006, with approximately 45,800 Utahns looking for work.

Tuesday there were 28,378 openings listed on the Department of Workforce Service's online job board. But the number of job seekers registered on the Web site had declined 17 percent from one year ago.

"It's a really tight job market right now for [companies looking] to find qualified employees," said DWS spokesman Curt Stewart. "We're getting the same amount of job orders as we did last year, but the number of applicants is not as high. Hands-on and entry-level jobs are even hard to fill right now."

Natural resources - fueled by Utah's natural gas boom - registered the strongest growth rate, while construction and professional and business services accounted for nearly half of the job growth, adding 11,800 and 11,600 jobs respectively.

Bustling residential and commercial development in the state has made it difficult to find construction workers, especially skilled craftsmen.

"The lack of good quality people has hindered our growth. We could probably be doing significantly more business if we had an adequate labor pool to draw from," said Tom Stechschulte, co-owner and general manager of All Trades Temporary Staffing, which supplies staff to the construction and manufacturing industries.

The lack of workers also has increased costs at the Salt Lake City-based staffing company, Stechshculte said. The company now invests more in recruiting and retention and pays workers 15 percent to 20 percent more than it did one year ago.

Convergys, one of the state's largest employers, has started offering sign-on bonuses of up to $1,000 to attract employees. The company, a customer service contractor, has 7,000 employees in Utah, up 300 positions from one year ago, said Kevin L. Mansfield, director of human resources.

Convergys, which currently has 250 openings at its five Utah call centers, also has enhanced its benefit packages and increased bonuses for employee referrals, Mansfield said.

"Applicants don't last long on the market," Mansfield said. "Even though there's more competition for employees, what we find is that [job seekers] find jobs quicker than they have in the past. Our recruiting cycle is a little bit shorter."

Mark Knold, senior economist at Department of Workforce Services, expects Utah's robust job growth to continue, nearing 5 percent in future months. The only hurdle will be supplying enough skilled workers, Knold said, but he expects a trend of net in-migration to the state, both by international and domestic workers, to fill the gap.