Despite a slowing construction employment market, Utah’s economy is holding up well against weaker national conditions. Employment in Utah grew by 2.1 percent in March and the state’s unemployment rate of 3.3 percent, while higher than in previous months, still is more than one-third below the national average.

According to the state’s department of workforce services, approximately 46,200 Utahns are unemployed. Meanwhile, the state is still adding about 2,200 jobs each month. The state’s total employment count is 1,264,800. Given the fact that it represents less than one percent of all jobs in the national economy, Utah has done quite well in job creation over the last year, being responsible for creating 5.4 percent of all new jobs.

And, there are reasons to be optimistic, even despite the recent announcement from La-Z-Boy that it soon would close its Tremonton manufacturing plant as well as a housing market strained by credit concerns. Utah’s long-running construction boom certainly has slowed and the state will likely be in a solid enough position to weather a loss of 10,000 construction jobs over the next two years, according to Mark Knold, senior state economic analyst. Knold’s assessment is well tempered:

“But considering the construction boom of the past four years, and that all booms have an end, this decline really isn’t unexpected. I’m actually encouraged by how well the remainder of the Utah economy is holding up and performing. High-paying professional jobs are still growing and in demand, healthcare is its usual stellar performer, and not withstanding the recent La Z Boy closure announcement, manufacturing employment statewide is bucking the national trend by growing. Slowing the Utah economy after three years of stellar growth may not be as much of a negative as first emotions might suggest. There are dangers to overheating an economy, as excesses can develop, resulting in more pain later when correcting those excesses.”

The trade/transportation/utilities, education and healthcare sectors continue to do well, Knold notes. “Healthcare employment growth is not only strong here in Utah, but is that one industry nationally that stands out, rain or shine,” he says. “The point is there are long-term factors at work favorably influencing this industry, and those factors point to this industry remaining a steady and consistent grower.”

Knold’s monthly report also took note of the state’s high-technology industry in which employment finally has recouped all of the lost jobs of the dot.com-bust at the beginning of the decade. High-tech employment at the end of 2007 is just shy of 68,000 with a total payroll of $4.2 billion, just under one-tenth of the state’s total. Almost 3,000 high-tech jobs were added in the last year. The average monthly wage for a high-tech position is nearly $5,300, more than 80 percent higher than the state average for all industries.

Utah is an inviting landscape for high-tech entrepreneurs. Just six weeks ago, a report indicated that the University of Utah was second in the nation at starting technology companies based on research at the school. The U of U’s performance is impressive considering that Massachusetts Institute of Technology has a research budget three times larger. Start-ups are initiated through the university’s technology venture development office, which has seen more than 50 companies started since it was established in 2005. They work in everything from energy, and medical devices to graphic design and software development, and to nanotechnology and disease diagnostics.