Economic Performance and Sustainable Development in Utah: A Regional Analysis

State-Level Economic Growth and Alignment with SDG 8

An analysis of Utah’s labor market reveals significant progress toward achieving Sustainable Development Goal 8 (SDG 8: Decent Work and Economic Growth). The state’s economy demonstrates robust performance, creating employment opportunities and fostering economic stability at a rate that surpasses national averages. This sustained and inclusive economic growth is evidenced by several key indicators.

• Job Growth Rate: Utah’s nonfarm payroll employment increased by approximately 2.3% over the past year, more than double the national rate of 1.1%.
• New Employment: A total of 39,700 jobs were added to the state’s economy since June 2024, bringing the total job count to 1,779,300.
• Unemployment Rate: The state maintains a low unemployment rate of 3.2%, well below the national average of 4.1%, with approximately 59,400 individuals unemployed.

Sector-specific growth further highlights this progress. The education and health services sector, crucial for SDG 4 (Quality Education) and SDG 3 (Good Health and Well-being), added 15,800 jobs. The construction sector added 6,200 jobs, and business services grew by 4,700 jobs, contributing to a dynamic labor market. However, the trade, transportation, and utilities sector experienced a contraction, losing 4,700 jobs, indicating areas requiring strategic attention to ensure a just transition for all workers.

Economic Diversification as a Pillar for Sustainable Growth

The Hachman Index and Progress Towards SDG 9

Utah’s economic resilience is strongly linked to its high degree of diversification, a key component of SDG 9 (Industry, Innovation, and Infrastructure). A diversified economy is better equipped to withstand economic shocks and maintain consistent growth, aligning with the goal of building resilient infrastructure and fostering sustainable industrialization. The Hachman Index, which measures economic diversity on a scale of 0 to 100, quantifies this strength.

Utah holds a Hachman score of 95.3, ranking it among the most diversified economies in the nation. As noted by regional economist Marilyn Cannon, “Similar to a well-diversified portfolio of stocks and bonds, a diversified economy tends to experience less volatility and more consistent growth over time.” This stability is fundamental to achieving long-term sustainable development.

1. Georgia (97.4)
2. Missouri (96.7)
3. North Carolina (96.2)
4. Illinois (96.0)
5. Arizona (95.4)
6. Utah (95.3)
7. Pennsylvania (95.3)

Regional Disparities and the Challenge of Inclusive Growth (SDG 10 & SDG 11)

The Case of Castle Country: An Economic Vulnerability Analysis

Despite statewide success, significant economic disparities persist at the regional level, presenting a challenge to SDG 10 (Reduced Inequalities) and SDG 11 (Sustainable Cities and Communities). The economic profile of Castle Country, comprising Carbon and Emery counties, reveals a critical lack of diversification, making it vulnerable to economic downturns and hindering its ability to create inclusive, resilient communities.

• Castle Country Regional Score: 37.2
• Carbon County Score: 46.9
• Emery County Score: 16.7

These low scores indicate a heavy reliance on a limited number of industries, which can impede recovery from economic shocks and limit opportunities for decent work. This situation underscores the importance of targeted interventions to ensure that economic progress is shared across all regions of the state.

Rural Development Dynamics and Connectivity

Recent trends show positive developments in rural Utah, with a 2.3% population increase between 2020 and 2021 and a 17% rise in employment since 2021. This growth, partly driven by an influx from urban areas post-pandemic, has improved inter-region connectivity. For many rural counties, proximity to a Metropolitan Statistical Area (MSA) is vital. Commuting and remote work expand job variety and supply labor to urban centers, insulating rural regions from local economic shocks and advancing the goals of SDG 8 and SDG 11. However, despite these positive trends in rural areas, Bureau of Labor Statistics data indicates that Castle Country’s job growth remains the lowest among all regions.

Path Forward: Fostering Resilience and Inclusive Development

Recommendations for Castle Country

The primary obstacle for Castle Country is its geographical isolation, which limits connectivity to major MSAs like Utah County and the associated economic benefits. To align with the principles of the Sustainable Development Goals, a focused strategy is required. To improve its Hachman score and build a resilient, sustainable economy, Castle Country must prioritize the development of a more diverse industrial base rooted independently within Carbon and Emery counties. Such a strategy is essential for achieving the targets of SDG 8, SDG 9, and SDG 11, ensuring that economic growth is inclusive, sustainable, and benefits all communities.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth

  • The article’s primary focus is on Utah’s economy, specifically its job growth, unemployment rate, and the creation of new jobs. It discusses the state’s nonfarm payroll employment increase of 2.3%, the addition of 39,700 jobs, and an unemployment rate of 3.2%. This directly relates to promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

• SDG 10: Reduced Inequalities

  • The article highlights significant economic disparities within the state of Utah. It contrasts the strong, diversified statewide economy (Hachman score of 95.3) with the struggles of specific rural regions like Castle Country (Hachman score of 37.2) and the Uintah Basin, which are described as the “least diverse local economies.” It also notes that “Castle Country’s job growth is the lowest of all the regions,” pointing to inequality in economic opportunity and resilience between different areas of the state.

• SDG 11: Sustainable Cities and Communities

  • The analysis of urban versus rural economies, including recovery from recessions and population growth in rural areas, connects to making human settlements inclusive, safe, resilient, and sustainable. The article specifically discusses the importance of “inter-region connectivity” and the economic links between rural areas and Metropolitan Statistical Areas (MSAs) through commuting and remote work. The mention of “geographical barriers” hindering this connectivity for Castle Country is a direct reference to the challenges in strengthening urban-rural linkages.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

   • The article’s central theme is economic diversification as a driver of stability and growth. It explains that “More diversified economies tend to experience higher employment growth over time and are more resilient in the event of economic downturns.” The use of the Hachman Index to score and compare the economic diversity of Utah and its sub-regions directly addresses this target.

2. Target 8.5: By 2030, achieve full and productive employment and decent work for all.

   • The article provides key statistics related to this target, including Utah’s low unemployment rate of 3.2% compared to the national 4.1%, the addition of 39,700 jobs, and the overall increase in nonfarm payroll employment. These metrics are used to assess progress towards achieving full and productive employment.

3. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.

   • The article explicitly discusses the economic links between rural and urban areas. It highlights how some rural counties thrive by “commuting or working a remote job” linked to a nearby MSA. It also points out the failure of this link for Castle Country due to “geographical barriers,” emphasizing the importance of this connectivity for regional economic health, which is the core of Target 11.a.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Hachman Index Score

   • This is a direct indicator mentioned for Target 8.2. The article provides specific scores to measure economic diversification: 95.3 for Utah, 37.2 for Castle Country, 46.9 for Carbon County, and 16.7 for Emery County.

2. Unemployment Rate

   • This is a key indicator for Target 8.5. The article states Utah’s unemployment rate is 3.2% and the national rate is 4.1%.

3. Job Growth Rate and Number of Jobs Created

   • These are indicators for Target 8.5. The article specifies a 2.3% job growth rate for Utah over the last year and the creation of 39,700 new jobs. It also notes a 17% increase in employment in rural Utah since 2021.

4. Connectivity to Metropolitan Statistical Areas (MSAs)

   • This is an implied indicator for Target 11.a. The article discusses this concept as a crucial factor for the economic health of rural areas. Progress could be measured by rates of commuting and remote work between rural and urban areas, which the article identifies as a key mechanism for economic insulation.

5. Regional Disparity in Job Growth

   • This is an implied indicator for SDG 10 (Reduced Inequalities). The article states that “Castle Country’s job growth is the lowest of all the regions,” which serves as a measure of economic inequality between different parts of the state.

4. Table of SDGs, Targets, and Indicators

Source: etvnews.com