Unemployment Insurance Claims Data Shed Light on the Local Economic Impacts of the COVID-19 Pandemic in Central Utah

By Lecia Parks Langston, Senior Economist

“You have power over your mind — not outside events. Realize this, and you will find strength.” Marcus Aurelius

In the wake of the COVID-19 pandemic, businesses lost revenues and workers lost jobs. But because of the time it takes to collect and collate data, economists have been left without much information to quantify the economic impacts at the local level.

But there is one ray of data illumination. Claims for unemployment benefits are promptly available and provide information about a large cross section of the economy. This post will outline what light unemployment claims data sheds on the state of central Utah’s economy.

While not all workers are protected by unemployment insurance laws, roughly 95% of jobs are covered. This makes claims data an exceptional source of information about the economy. Not included under unemployment insurance laws are most self-employed workers, about half of agricultural employment, unpaid family workers, railroad personnel (covered separately) and many nonprofit organizations (such as churches). Also, some out-of-work employees may not have worked a sufficient work history to qualify for unemployment insurance benefits, but may file anyway. Fortunately, in this time of economic distress, the social safety nets of the unemployment insurance program, special national COVID-19 funding and social programs are working together to keep workers’ income and well-being stable.

Unemployment claimants and the unemployed; they aren’t the same

Also, keep in mind that, in addition to individuals drawing unemployment benefits, the unemployment rate includes those entering and re-entering the workforce and noncovered groups without current employment. This means the number of “unemployed” will be greater than the number of claimants. In “normal” times, only about 40% of the “unemployed” are claiming benefits. The generally reported unemployment rate also has a work-search requirement. If you haven’t made any minimal attempts to find work, you aren’t counted as “unemployed.”

Watch this Space

While this analysis won’t be updated regularly, new data will be added to the data visualization on a weekly basis allowing readers to check back for the latest information.

An Unprecedented Event

Not surprisingly, first-time claims for unemployment benefits soared in Utah and across the nation as the pandemic swept across the country. This increase is unprecedented since the creation of unemployment insurance coverage during the Great Depression. Week 12 (beginning March 16) marks the start of this unparalleled surge in claims. On a positive note, while new claims for unemployment benefits have skyrocketed in Utah, the state currently shows one of the lowest claims rates in the nation.

For most central Utah counties, initial claims peaked in the third week of the pandemic and have since tapered downward. Sevier County proved the lone exception peaking in the second week. Since mid-March, more than 1,383 new claims were filed in the region. In all of 2019, only 1,270 initial claims were filed. By week 19, claims measured considerably lower but continued to run substantially greater than in previous years, basically on par with the Great Recession.

Here’s another example of the tremendous flood of new claims. Prior to the COVID-19 pandemic, counties in central Utah averaged a total of 50 first-time claims per week. This time period in early 2020 included seasonally high-claims weeks in January. In the weeks following, an average of 173 claims were filed each week for an increase of 604%.

However, despite this historic increase in initial claims, most of central Utah fared much better than other regions in the state and nation. Even though Utah had the third lowest claims rate in the nation, its new claims increased 1,378% during the pandemic. Statewide, claims filed during the pandemic measured 10% of employment covered by unemployment insurance laws compared to only 6% in central Utah.

Who took the hardest hit?

Counties with a high-dependence on tourism felt the greatest economic and employment shocks in the slowdown. In central Utah, only Wayne County maintains a significant share of employment in tourism-related industries. It was also the hardest hit by the COVID-19 pandemic. In Wayne County, roughly 11% of individuals covered by unemployment insurance have filed a claim. Moreover, many seasonal Wayne County workers were already drawing unemployment benefits before the pandemic began. In contrast, in Millard County only 4% of covered workers filed a claim in the weeks following the start of the pandemic. Sanpete (5%) and Sevier (6%) counties also displayed relatively low rates. While Piute County’s figure measured somewhat higher at 10%, many of these claims reflect persons employed outside the county rather than within it.

Tourism and COVID-19

Especially in the early stages of the pandemic, this is a story of tourism-dependent industries. Almost 22% of post-COVID-19 initial claims filed in central Utah represented workers previously employed in accommodations and food services. In addition, the true effect of the pandemic on this industry is masked by a large number of claims classified as industry “unknown” in the early days of the claims flood. Undoubtedly, many of these claims would rightfully be classified in accommodations/food services if the appropriate information were available.

Other high-claims industries included healthcare/social assistance (reflecting the cessation of elective procedures and visits) and retail trade. Many of these high-claims industries reflect their high share of total employment in general. In addition, they often serve the public face to face or have encountered damage due to the decline in demand for travel constraints.

The High and the Low

Because of its job-to-job nature, the construction industry typically accounts for 30-50% of first-time claims in the region. However, although construction’s new claims have also increased, they have increased at a much slower-than-average rate. After the COVID-19 pandemic hit, construction contributed only about 4% of first-time claims. Ease of social-distancing and good weather have helped construction maintain its employment levels. New claims measured just 3% of covered construction employment.

Only a portion of agricultural employment is covered by unemployment insurance laws. However, as companies work to keep America fed, agribusiness in the region laid off few employees. Only 2% of central Utah’s covered agricultural workers have filed a claim during the COVID-19 pandemic.

Public administration, utilities, mining and educational services (including public and higher education), have also managed to keep a higher percentage of their workforces employed.

County by County

Millard County

• Along with Beaver County, Millard County showed the lowest COVID-19-related claims rate in the state (4%).
• Millard County has relatively high concentrations of employment in industries (such as covered agriculture and utilities) least affected by the pandemic.

• Prior to the COVID-19 pandemic, Millard County averaged three unemployment claims per week compared to 26 new claims afterward, an increase of 758%.
• Unlike most areas where accommodations/food services generated the largest number of claims, in Millard County, healthcare/social assistance topped the industry ranking followed by retail trade.
• Construction, healthcare/social assistance and accommodations/food services showed roughly equal claims as a percentage of covered employment.
• Millard County accounted for 12% of the Central Utah Region’s new claims prior to the pandemic, and 15% of claims during the pandemic.

Piute County

• Less-populated Piute County maintains little employment covered under Utah’s unemployment insurance laws. In addition, a notable share of residents are employed in other counties which muddies some analysis.

• Prior to the COVID-19 pandemic, Piute County averaged one new claim per week, compared to an average of four claims per week during the pandemic. This change represents an increase of 610%.
• Roughly 45% of claims were filed from workers furloughed from the accommodations/food service industry. A large share of claims from the “unknown” industry category most likely originated from this industry as well.
• Other industries contributed few new claims.
• Piute County accounted for the same percentage (2%) of the region’s claims before and during the pandemic.

Sanpete County

• After spiking in the early weeks of the slowdown, Sanpete County’s claims are now running roughly equivalent to the numbers experienced in the previous recession. In most Utah counties, first-time claims continue to flow in at a much higher level.
• In the weeks before the COVID-19 pandemic, Sanpete County averaged eight initial claims per week. After the pandemic hit, claimants filed an average of 58 claims per week, marking an increase of 588%.
• In Sanpete County, first-time claims during the pandemic period measured 5% of covered employment. That places Sanpete County near the bottom of a county-by-county ranking.
• Unusually, healthcare/social assistance showed the highest number of new claims followed by the “usual suspect” — accommodations/food services — in the second spot.
• Sanpete County showed a notably high share of claims emanating from an unspecified industry.
• The relatively high percentage of mining claims compared to industry employment in Sanpete County likely reflects individuals working in other counties.

Sevier County

• Sevier County generated the highest number of claims in the region during the pandemic.
• Prior to the COVID-19 pandemic, Sevier County averaged 10 first-time claims per week compared with 58 claims during the pandemic. This increase of 627% ranked as the largest in the region, but far below the statewide average of 1,378%.
• Accommodations/food services, healthcare/social assistance and retail trade originated the highest number of initial claims after the pandemic hit.
• More than one-fourth of Sevier County’s COVID-19 initial claims were initiated in the accommodations/food services industry.
• Sevier County’s regional share of new claims held relatively steady before and during the pandemic.

Wayne County

• Of the five counties located in central Utah, Wayne County maintains the heaviest dependency on tourism-related employment. It also shows the highest first-time claims to covered employment ratio in the area.
• Before the COVID-19 pandemic, an average of three initial claims were being filed in Wayne County compared to an average of 14 claims in the following weeks. The pre-to-post-COVID-19 increase registered 410%, the lowest in the region. Many seasonal workers were already drawing unemployment insurance benefits.
• Initial claims for unemployment benefits filed during the pandemic as a percent of covered employment measured 11%, near the middle of a ranking of all Utah counties.
• Here too, accommodations/food services was the source of the largest number of new claims, trailed far behind by retail trade.
• More than half of all new claims during the pandemic time period originated from accommodations and food services. Roughly 20% of workers in this industry filed a new claim for unemployment after the start of the COVID-19 pandemic. Many seasonal workers were already receiving benefits.

Health Insurance in the Time of COVID-19

U.S. Census Bureau releases new 2018 Small Area Health Insurance Estimates
By Lecia Parks Langston, Senior Economist

 

“Americans want jobs. They want affordable health insurance. They want an education.” John McCain

 

 

As the world hunkers down under the effects of a pandemic, the need for health insurance coverage becomes even more apparent than usual. Just how many Utahns are covered by health insurance? Who are the uninsured? Data just released by the U.S. Census Bureau (2018 Small Area Health Insurance Estimates (SAHIE)) provides enlightenment on healthcare coverage in the under-65-year-old population. Additional demographic information is available from the American Community Survey, rounding out our understanding of the insured and uninsured in Utah.

 

Small Area Estimates

The SAHIE estimates cover the population under 65 years of age. Of course, virtually all citizens 65 and older are covered by government-provided Medicare benefits. Because these estimates date back to 2008, two years before the signing of the Affordable Care Act (ACA), they suggest the how the ACA has changed the health-insurance landscape in Utah.

 

 

Compared to other counties across the United States, Utah’s counties, for the most part, had mid-level to high levels of insured individuals in 2018 (the most recent data available). National regions of high coverage include northern eastern states and the west coast. Texas seems to have the highest uninsured levels with a vast number of counties experiencing uninsured rates of greater than 20%. Most Utah counties have uninsured shares below 15%.

 

In 2018, Morgan, Davis, Daggett and Emery counties showed the highest insured rates in Utah. In contrast, San Juan, Duchesne, Uintah, Piute and Garfield experienced the lowest rates of health insurance coverage.

That was then, this is now

The number and share of Utahns covered by health insurance have certainly improved in the past 10 years. In 2008, roughly 83.7% of the under-65 population was insured compared to about 89.6% in 2018, an increase of nearly 6 percentage points. In terms of individuals, that increase represents a gain of 427,000 insured Utahns.

 

However, coverage appears to have peaked in 2016 at 90.3% and has since retrenched. The repeal of ACA’s individual mandate and price increases, due to the elimination of cost-sharing reductions to payers selling individual plans, likely contributed to the recent slight decline in Utah coverage. However, the state’s Medicaid expansion, effective in 2020, should help bump up insured rates.

Less-populated counties, with initial low insured rates, experienced the strongest gains in insured shares. Daggett, Rich, Grand, Kane and San Juan counties displayed gains of roughly 10-points or higher. While all counties showed an improvement in the insured share of the under-65-year population, Salt Lake, Carbon, Summit and Millard counties experienced the smallest gains.

 

Highlights from the American Community Survey (2014-2018)

• Roughly 58% of Utahns (of all ages) are insured in full or in part by employer-provided plans. Only 9% directly purchase their entire insurance coverage from a private provider. In total, nearly 70% of the state’s citizens have private coverage.
• In total, public plans (Medicare and Medicaid) cover roughly 12% of Utah’s population. About 7% of the population is covered by Medicaid with another 3% covered by just Medicare. Roughly 1% of Utahns have coverage under both Medicare and Medicaid.
• Those with a combination of public and private coverage account for another 9% of Utah’s population. That group includes 4% of Utahns who carry Medicare plus a supplemental source of private insurance. On the other hand, 10% have no healthcare insurance at all.
• The very young and the very old are most likely to carry health insurance. Thanks to Medicare, individuals 65 years and older are the most likely to be covered (99%). On the other end of the spectrum, children under 6 years old displayed a coverage rate of 94%, with 6-18 year olds not far behind (92%).
• Individuals between the ages of 26 and 34 are the least likely to have health insurance. Only 84% are covered in Utah.
• By gender, females (91%) are just slightly more likely than males (89%) to maintain health insurance. This may be partially due to the dominance of women in the highly-covered 65-years-and-older group.
• Education shows a high correlation with health insurance coverage. Persons with a bachelor’s degree or higher show the highest coverage rate — 96%. On the other end of the scale, individuals who did not graduate from high school maintained an insured rate of just 68%.
• Not surprisingly, of all labor force statuses, the unemployed are least likely to have health insurance (65%). Interestingly, those not in the labor force (which would include the retired), display an insured rate just slightly lower than the employed. In addition, based on work experience, individuals working full-time, year-round are the most likely group be insured.
• Household income is also a good predictor of health insurance coverage. Those with the highest incomes ($100,000 and over) have the highest coverage rates (95%). In contrast, those with the lowest incomes (under $25,000) have the lowest coverage rates (81%). a
• Latino and Native Americans show the lowest rates of any major ethnic/racial groups. Rates for both sets measure just 73%. White, non-Latino Utahns maintain the highest health insurance coverage shares.
• Only 56% of noncitizens have health insurance in Utah compared to 92 percent of Utahns born in the United States.

The U.S. Census Bureau Releases County Population Estimates for 2019

Next year, actual counts from the decennial census will be available

By Lecia Parks Langston, Senior Economist
“Any time you have population growth, there are business opportunities.” Roland Dorson

 

Hopefully, all Utahns are taking a break from COVID-19 concerns to respond (by phone, online or by mail) to their 2020 Census questionnaires (https://2020census.gov/). Since the Census results help determine how billions of dollars in federal funding are spent, accurate counts are important in order for Utah’s communities to get their “fair share.”

 

Because the actual counts are not yet available, the U.S. Census Bureau has just released the last set of population estimates for the decade. What do they show?

• Iron County took the lead in population growth rates for 2019 — up by 4.1%. Following close behind was its neighbor, Washington County, with a growth rate of 3.5%.
• Other fast-growing areas included counties at the edge of urban spread, such as Juab, Tooele and Wasatch.
• Although Piute County saw an increase of only about 30 individuals, its small base population also resulted in a strong percentage increase (2.9%).
• Utah County showed the highest percentage increase (2.4%) of the big-four Wasatch Front counties.
• Estimates for both San Juan and Daggett counties suggested a decline in population, while Duchesne County’s population appeared to hold steady.
• Utah County experienced the largest numeric gain in population — nearly 15,000 residents, followed by Salt Lake County (up about 12,000) and Washington County (up nearly 6,000).
• Utah and Washington counties finished neck-and-neck in the race for net in-migration. Utah County’s net in-migration measured 5,200 compared to 5,100 for Washington County.
• Several counties displayed net out-migration. Most notable on the list were Duchesne and San Juan counties. Daggett, Emery and Summit counties showed lesser out-migration estimates.
• For its size, Utah County shows a relatively high number of births and a low number of deaths, placing its natural increase not far behind population-dense Salt Lake County.
• Although Washington and Cache counties showed roughly equivalent numbers of births, deaths in Washington County measured much higher.
• In 2019, Emery County experienced its first (albeit small) population growth in more than a decade.
• Morgan County’s 2019 growth rate slipped below the state average for the first time this decade.
• Wayne County saw its best population growth (1.5%) of the past 10 years in 2019.
• Between 2010 and 2019, Wasatch County was the third fastest growing county in the nation. Washington County (St George, UT MSA) was the fifth fastest growing metropolitan area in the United States between 2010 and 2019. Its relatively small size contributes mathematically to a high growth rate. The Provo-Orem, UT MSA ranked ninth.

These aren’t the only estimates in town. The Kem C. Gardner Policy Institute at the University of Utah has assembled the Utah Population Committee (UPC) to reinstitute the population-estimates work previously conducted by the Utah Population Estimates Committee (UPEC). These estimates can be found here.
U.S. Census Bureau estimates use the same methodology in producing population figures for every county in the nation. Therefore, for nationwide comparisons, U.S. Census Bureau estimates may have the advantage. On the other hand, UPC population estimates have the benefit of local-analyst expertise and additional data sources.

Fillmore plans new city park

The city over many years has built up a reserve of about $13.5 million in unrestricted cash— money that can legally be used for discretionary spending—in its electric, sewer and water enterprise funds. Council members said the city has saved so much money that now is a good time to give it back to citizens in the form of a project that would benefit the community — a city park.


The new park would be built on city land near the current baseball field. It would feature two pavilions, a new sand volleyball court, pickle ball courts, a splash pad, bathroom facilities, a playground and parking for a bit more than 50 vehicles.


The added expense to the city for upkeep on the new park would most likely be covered by the $50,000 in new annual revenues generated by the city’s RAP tax, approved by voters in the city’s most recent municipal election.


After hearing multiple public comments, the city council eventually voted unanimously to move the $1 million for the park project from the electric enterprise fund into the city’s capital projects fund. Millard County Chronicle Progress

Millard County Commissioners reject zone change

Millard County commissioners voted unanimously to reject an application for a zoning change on 2,000 acres of land nine miles outside Hinckley, effectively killing a local businessman’s plan to build an industrial hog operation on the site. Steele Weston, owner of Pumbaa Farms, was the applicant. His plan, debated numerous times in public, sought to house up to 30,000 hogs in seven barns as part of a large-scale farrowing operation. Millard County Chronicle Progress

Delta council OKs sewer contract

Delta City Council members approved a $145,000 contract last Wednesday for work on the city’s aging sewer system. Val Kotter & Sons, a Brigham City company was awarded the project. The sewer project is the first step in repairing the city’s sewer system. A master sewer plan created by Sunrise and submitted to the city in April estimated the city could spend as much as $19 million to overhaul the entire system. Millard County Chronicle Progress

Delta City airport construction nears finish

Construction to repave the runway, build more accessible ground approaches to the strip of asphalt as well as install new lighting and new stripes should be completed in December. The city received a $4.16 million grant from the Federal Aviation Administration this past summer to make the improvements. Geneva Rock is the main contractor on the project. Millard County Chronicle Progress

Millard County Planning Commission OKs zone change for hog production facility

The developer behind a proposed industrial-strength hog production facility successfully navigated his first hurdle despite a considerable show of public consternation. The Millard County Planning Commission voted 3-2 to advance a zoning change to county commissioners that could pave the way for the development of a concentrated confined animal feeding operation involving some 30,000 head of hogs on a patch of desert a little less than 10 miles west of Hinckley. Millard County Chronicle Progress

Rock Canyon Bank opens Fillmore branch with community event

Rock Canyon Bank’s Fillmore branch has been open since October 2018 as a loan production office but officially started moving into its new office three weeks ago. Now fully operational, the bank is a “full-service” institution, offering the traditional savings and checking accounts; commercial and residential loans; consumer loans; money marketing amounts and other services, including children’s savings accounts. Millard Chronicle Progress

Latest addition to evolving energy hub announced

Millard County could soon be home to the world’s largest renewable energy storage operation, Gov. Gary Herbert announced during his annual Energy Summit in Salt Lake City.


The project is a partnership between Mitsubishi Hitachi Power Systems (MHPS), makers of turbines powered by hydrogen and natural gas, and Magnum Development, which is developing a number of fuel storage and delivery ventures near the Intermountain Power Project (IPP).


This new initiative, dubbed the Advanced Clean Energy Storage (ACES) project, aims to eventually generate up to 1,000 megawatts of 100 percent clean energy— enough electricity to power 150,000 homes for an entire year—on demand utilizing Magnum’s unique underground salt domes to store air under high pressure. Air heats to a high temperature under high pressure or can be heated to power turbines, according to the Energy Storage Association, thus generating zero-carbon electricity during peak demand times, when other renewable sources, such as wind and solar alone, may be unable to meet the needs of power-hungry communities across the West.


The ACES project follows local permitting approval a few weeks ago of the TransWest Express high-voltage power line project, a massive 730-mile power transmission initiative that aims to connect 3,000 megawatts of renewable energy in Wyoming with customers across the western region. A converter station is planned for Millard County as well as 93 miles of line within the county’s borders.


Premium Energy Holdings, a California venture, also filed a preliminary application for a permit from the Federal Energy Regulatory Commission on May 9 to build a closed-loop, 2,000 megawatt hydro electric power project utilizing Delta’s DMAD Reservoir and a proposed new reservoir in the mountains surrounding Oak City.


The culmination of all these projects would result in Millard County becoming a hub of renewable power generation and transmission initiatives serving the entire western electric grid. Millard County Chronicle Progress

Massive transmission project gets green light

Millard County commissioners approved two conditional use permits last week for an ambitious power transmission project that could deliver $477 million in tax receipts to the county over the life of the endeavor.

TransWest Express (TWE), a subsidiary of Denver-based, privately-held Anschutz Corporation, is planning to start construction next year on a 730-mile power transmission project stretching from wind farms in Wyoming, crossing portions of Colorado and Utah, to a sub-station in Nevada, potentially delivering 3,000 megawatts of renewable energy to customers throughout the Southwest. That amount of electricity is enough to power 1.8 million homes annually. About 93 miles of new transmission line as well as an electric converter station would be located in Millard County. The converter station would be used to convert high voltage direct current electricity into alternating current power. The new power lines would be built mostly on federal lands inside the county. Three percent would stretch across state land and 6 percent would cross private land, according to a permit application on file with the county. Millard County Chronicle Progress

Where Have All the Young Workers Gone?

Young workers in Utah and the U.S. comprise a smaller share of the labor force

By Lecia Parks Langston, Senior Economist

 

"We should be trying to reach the young workers because that’s when you’re most idealistic and have least fear."  John Lennon

 

One of the most striking labor market changes of the last decade and a half is the declining participation of teenagers in the labor force. Nationally, teenage participation topped out at almost 59 percent in the late 1970s, and today stands at roughly 36 percent. While the trend isn’t as pronounced in Utah as it is nationwide; here, too, young people are less likely to be employed or looking for work than they were as the century began. The reasons for this phenomena are not clear. However, more after-school activities and increased borrowing to pay for post-secondary education (rather than earning while learning) may factor into this decline.

 

On the other hand, some characteristics of youth workers have changed little. Utah teens still show some of the highest labor force participation rates in the nation. Also, young people continue to show the highest unemployment rates, the lowest wages and the top turnover rates of any age group.

 

Observatory adds 260 new detectors; to quadruple search area in cosmic ray quest

The Telescope Array Project—the multinational cosmic ray observatory that calls Delta home—is undergoing an expansion with the placement of double the current number of surface detectors over a wider area. New telescopes are planned for observation posts on Middle Drum and Black Rock Mesa as well.


Starting last month, scientists from the University of Utah and the University of Tokyo began monitoring the placement of about 260 new ground detectors, ping-pong table-sized devices called scintillators. The detectors are being placed by helicopter in the desert north and south of Delta. A couple of hundred more detectors will be placed in the fall, effectively doubling the number of detectors currently in operation.


The expansion, will cost about $4.5 million, most of that funding coming from Japan. Expansion work was slated to begin in January, but was stalled by the recent federal government shutdown. Millard County Chronicle Progress

Sawtooth expansion effort gets nod

Millard County commissioners approved changes to the conditional use permit governing development of a natural gas facility on property zoned for industrial use. Sawtooth Caverns, LLC sought permission to alter a previously approved permit to add property for two new underground storage caverns as well as add property to construct a 3.5 mile pipeline connection to the existing UNEV gas pipeline, a 400-mile pipeline that stretches from Woods Cross to Las Vegas.


The company also sought permission for a petroleum right of way as part of the amended permit. Lastly, the company requested that its name be added as the holder of the permit moving forward.


Sawtooth Caverns had previously gone under the name Magnum NGLs. In March 2011 Magnum Solutions, LLC first asked permission to construct a natural gas storage and distribution facility near Intermountain Power Project’s facilities. By November of that year, the project’s developers were looking to add natural gas liquids storage to the list of allowed uses at the site. Construction of the facility was completed in July 2014. By December 2014, the original use permit was split in two, with one covering gas storage and the other covering natural gas liquids storage, the area now operated by Sawtooth. The amended permit allows Sawtooth to store refined liquid products at the site, in addition to the proposed expansion. Millard County Chronicle Progress

BLM seeks public comment ahead of Sevier Playa potash project Environmental Impact Statement

The public can submit comments regarding the proposed Sevier Playa Potash Project to the Bureau of Land Management ahead of a draft Environmental Impact Statement.


The project would be located on 124, 223 acres of public land in Millard County. It would be developed by Crystal Peak Minerals, which seeks to take advantage of rising global demand for sulfate of potash, a key ingredient in agricultural fertilizer. The project could create up to 275 jobs during construction, maintaining 175 full-time employees over the 30-year lifespan of the project. Public comment is being sought as part of the federal agency’s decision-making process. Millard County Chronicle Progress

Deseret canal gets lining update

Built in 1885, the Deseret low-lying canal was dug by horse and plow teams. The Millard County canal is now getting a needed update with water and financial conservation in mind. The canal is receiving a more modern touch with bolstered sides and pond liner along the bottom.


Approximately 8,000 feet of the 24-foot bottomed canal is being dug and lined, from an output near Gunnison Bend Reservoir at the north end to the Old Mill at the south. The project costs an estimated $940,000 and is funded through the Board of Water Resources, through a 12-year payback plan in order to keep level estimate costs. Millard County Chronicle Progress

New GDP figures will add to the local economic-analysis tool box

New GDP figures will add to the local economic-analysis tool box

By Lecia Parks Langston, Senior Economist

“We will find neither national purpose nor personal satisfaction in a mere continuation of economic progress, in an endless amassing of worldly goods. We cannot measure national spirit by the Dow Jones Average, nor national achievement by the Gross National Product.”  Robert Kennedy

As a regional economist, I’m routinely asked for gross domestic product (GDP) figures for Utah’s counties. After all, nationally, GDP is routinely tracked as an economic indicator. “Sorry,” I say, “the Bureau of Economic Analysis (BEA) doesn’t produce GDP statistics for counties (unless they are a metropolitan statistical area). But data-lovers, “the times, they are a-changin’.”

The U.S. Bureau of Economic Analysis has just released proto-type county GDP statistics for 2012 to 2015. You can explore the data in the visualization that follows.

Yes, the proto-type information is dated. However, data-users can take a first-look at the series and assist BEA by providing feedback and comments on the prototype data via e-mail at gdpbycounty@bea.gov. Official statistics are scheduled for release in December 2019.

When the official data is released, this new data will add to our ability to analyze Utah’s local economies.

What do the proto-type figures reveal? Here are a few highlights:

In 2015, eight Utah counties experienced a decline in GDP following a trend similar to 2013 and 2014.

• Less-populated counties were most likely to experience a bout of declining GDP.
• Daggett County, one of Utah’s smallest in both geographic size and population, showed the highest GDP growth rate in 2015 with Washington County showing the highest rate of expansion among more-populated counties.
• It wasn’t uncommon for Utah counties to experience at least one year of GDP contraction between 2013 and 2015.
• Not surprisingly, the vast majority of GDP is generated along the Wasatch Front.

Site outside Milford chosen for experimental geothermal power project

The federal government is planning to spend up to $140 million toward plans at the University of Utah to research and develop a new method for extracting geothermal energy from the earth. The U.S. Department of Energy picked the windswept area northwest of Cedar City to expand the Frontier Observatory for Research in Geothermal Energy, or FORGE, with hopes of developing a more efficient way to use the earth's heat to meet electricity needs.

The plan involves drilling two 8,000-foot wells into the ground beneath the site. Water is sent underground into the heat of the earth and then drawn back up to the surface, where its steam can be used to move a turbine and generate electricity. The Spectrum

Ephraim ServerPlus looking for employees

ServerPlus, a customer service and tech support company that caters to internet service providers and other tech clients, opened a call center in downtown Ephraim in November and is currently hiring. The call center is different than some others in the area, because people call in looking for help from the ServerPlus broadband support technicians, as opposed to making outbound calls. Sanpete Messenger

Magnum Solutions Expanding in Millard County

Magnum Solutions, LLC was recently approved for several conditional use permits that would allow their operations to expand while keeping in line with the county’s vision of growth and development, after careful review. The company owns the largest underground propane and butane storage facility in the western United States.

In addition, Magnum has made significant progress toward the launch of three new businesses in the past few months. On March 30, Magnum closed on a joint venture with a former company, Magnum NGLs, now Sawtooth NGL Storage Caverns, LLC to advance on a new business- refined products storage. Refined products include gasoline, diesel fuel and aviation fuel.

In the coming months, Magnum and Sawtooth will be working closely with the county to obtain the necessary permits to incorporate the refined products business with the existing facility.

Magnum also received notice in the past two weeks that they have passed to the next round in the process for Southern California Public Power Authority’s request for proposal to develop a compressed air energy storage facility at Delta. The significance of the CAES technology is that CAES captures intermittent renewable generation and shapes the product into reliable and dispatchable electricity.

The Los Angeles Department of Water and Power, which is the major participant in IPP, is part of SCPPA. This is significant for Magnum as they are now engaged in discussions with California power entities for the construction of 160- megawatt CAES plant at the Western Energy Hub, said James.

The development of a CAES plant in Delta will not only support energy security and reliability throughout the Western U.S., but also create jobs in Millard County. Millard County Chronicle Progress