Utah Has Ability To Create Jobs - Utah Is Among The Top U.S. States In A Number

Mike Gorrell, June 3, 2010 Salt Lake Tribune

"States that pursue a course guided by free-enterprise principles fare better economically than those that don't," U.S. Chamber President and CEO Thomas Donohue said in a May 10 letter to Gov. Gary Herbert.

"By embracing many strategies at the core of our system -- competitive tax rates, open trade and commonsense regulation -- states are helping to jump-start our economic recovery and create more jobs."

Spencer Eccles, executive director of the Governor's Office of Economic Development (GOED), said the study's conclusions reinforce his belief that Utah's approach to promoting clusters of industries in specific fields (from aerospace to outdoor recreation) is bearing dividends.

"The whole premise is we need to connect industry to education so that the educational community is producing the work force of the future today," he said.

Donohoe said the chamber was eager to spread its findings to governors because the study showed states are much more active than the federal government in job creation.

The need is there, he noted, contending the U.S. economy must add 20 million jobs in the next decade -- 7 million to replace losses in the Great Recession, another 13 million to sustain new people entering the work force.

The chamber study specified that Utah is moving in the right direction toward meeting that goal through:

» Investments in innovation by the Utah Science and Technology Research Initiative, such as development of the $100 million Neuroscience Biomedical Technology Building;

» Networking opportunities created through a team effort by World Trade Center Utah, the Utah International Trade and Diplomacy Office and the Salt Lake Chamber;

» Technology transfers from Utah and Utah State universities to the private sector via the Centers of Excellence program, a system enhanced with grants and tax credits to boost research and start-up companies;

» Public response to the existence of the Utah Educational Savings Plan, which has resulted in $3 billion being set aside by families for the higher education of their children and grandchildren. The state also has shown interest in developing its work force through the online dissemination of training, education and career information;

» Tax credits and incentives encouraging entrepreneurs to relocate to Utah or expand existing operations, a program overseen by the board of the Governor's Office of Economic Development.

One upshot of these investments, the report noted, is that Utah had a 23 percent growth rate in science, technology, engineering and mathematics jobs from 2002 to 2009.

That was tied for third best in the country, behind North Dakota (31 percent growth) and Wyoming (24 percent) and the same as Nevada.

"All roads are pointing in the right direction," Eccles said. "We feel good with the tools we have, refining incentive programs and helping small businesses negotiate government contracting. ... The job creation thing is working."

mikeg@sltrib.com