It should hardly surprise anyone that Utah is now beginning to feel the impact of the housing and credit crises that have already made their deep marks in other states and the most recent numbers from the state’s department of workforce services reflect that precisely.

Utah’s overall annual job growth rate is now the slowest it’s been since August 2003 — at just 0.3 percent. While it may be small comfort that the state is still showing numbers in the positive territory — along with an unemployment rate of 3.7 percent well below the national average — the bust in residential construction is showing in many of the state’s largest metropolitan counties, according to Mark Knold, senior state economist.

“If you were a Utah county that experienced a housing boom, then you are currently a Utah county with a housing bust. Because of that, there is a difference in terms of how the individual Utah counties are currently faring,” Knold explains. “There is almost a rural vs. metro economic performance dichotomy developing in the Utah economy. Rural economies, which didn’t see much in the way of a housing boom, are still holding up well.”

Among the shakiest counties now include Davis, Utah, Washington, Tooele, Morgan, Wasatch, and Iron, Knold says, adding Salt Lake County isn’t far behind. And, at some point, nonresidential construction — which has held up remarkably well in Utah — will begin to see declining job numbers as further effects of the national economic slowing take hold.

Indeed, the transformation has been dramatic. The construction industry stands out — with 14,400 fewer jobs than a year ago. The financial services industry also has contracted, with 1,100 fewer jobs than a year ago and, given the most recent financial news from New York City, the declines may accelerate in that sector. And, for the first time in recent history, the state’s manufacturing industry is showing a net loss, although the weakness seems now to be confined primarily to Davis County and the areas northward.

Other industry sectors in the economy, while continuing to hold their own, worry Knold in their near-term prospects. “Households are still forming in Utah, but they don’t seem to be going into houses. Getting into houses spurs appliance, furniture, home and garden, and other domestic sales,” he explains. “With new home building stagnant, one would expect these types of housing-related consumer purchases to stagnate also. The professional and business services industry is also vulnerable to slowing through the temporary help or employment agencies. A slowing economy means a diminishing need for this type of service. In fact, contracting employment via this hiring mechanism is how companies get leaner and respond to slowing markets.”

And, Knold suggests that a reversal in troubles will not happen quickly. In fact, further contraction is likely to occur going into next year. The most recent convulsions on Wall Street and in global markets will push up the price of money which, in turn, will likely depress consumer spending that was bolstered during the summer by tax rebates. Business newswires are showing today that the cost of borrowing in dollars overnight more than doubled as banks hoarded cash amid speculation more financial institutions will fail.

Speculation also has grown that the Federal Reserve will cut interest rates. As a sign of how sentiment has changed dramatically, futures traders put the odds of a reduction at 98 percent, up from 12 percent at the end of last week.