Utah’s unemployment rate fell to 3.5% in August as employers reported 20,600 more jobs than a year earlier, keeping the state’s labor market stronger than the national average even as hiring cooled in some industries. Statewide nonfarm employment reached an estimated 1,788,800, a 1.2% annual increase.
The Department of Workforce Services’ state release said about 64,100 Utah residents were unemployed, down as the jobless rate slipped one-tenth of a percentage point from July. The national rate held at 4.1%, placing Utah six-tenths of a point below the country as a whole.
Private employers produced the net growth. Private-sector employment rose by 23,600 jobs, or 1.6%, over the year, while eight of 10 major private industry groups expanded. Professional and business services led with 8,500 additional jobs, followed by education and health services with 4,900 and leisure and hospitality with 4,000. Information lost 2,300 jobs and natural resources declined by 200.
The state’s detailed workforce update shows Utah’s 1.2% annual employment growth outpacing the national 0.3% rate. That comparison matters because it measures payroll jobs located in the state, not merely the employment status of Utah residents. A person can hold more than one payroll job, and jobs are counted where the work occurs.
The household survey adds another dimension. Federal labor data show Utah’s civilian labor force grew by 3,747 people in August to 1,826,291. The number of unemployed residents fell by 739, while the estimated number of employed residents increased by roughly 4,500. Those movements explain why the unemployment rate declined even as more people entered the workforce during the month.
Over the year, however, Utah’s labor force was about 13,600 smaller than in August 2025. The number of employed residents was also lower, even though employer payrolls increased. The apparent tension is not necessarily a contradiction: the household and establishment surveys use different samples and concepts, and both are subject to revision. It does signal that workforce participation deserves attention alongside job creation.
A separate federal payroll table likewise points to August growth. Its seasonally adjusted series shows construction employment increasing by about 600 positions from July and manufacturing rising by about 900. Those gains provide a broader base than a report driven entirely by services, although professional services and health-related work accounted for much of the annual expansion identified by the state.
Utah’s chief economist, Ben Crabb, characterized the economy as fundamentally stable but said the hiring landscape had cooled around the edges, making competition tougher for part-time shifts, secondary hours and people entering the workforce. That assessment fits the data: job growth remains positive and unemployment is comparatively low, but the smaller year-over-year labor force and losses in information temper the headline strength.
The next reports will show whether August’s improvement persists. For policymakers and employers, the practical test is not only whether Utah adds jobs, but whether it can expand the pool of available workers and connect new entrants to the sectors still producing sustained growth.
