Utah's unemployment rate fell to 3.5% in August 2026, according to data from the Federal Reserve Bank of St. Louis, continuing a slight downward trend from the 3.6% recorded in both June and July. This latest figure follows a period of steady labor market performance, as the state's economy added an estimated 25,200 jobs over the 12 months leading up to July 2026.
Recent Unemployment Trends
The August 2026 unemployment rate of 3.5% represents a decrease from the 3.6% rate reported for July 2026. According to the Federal Reserve Bank of St. Louis, the unemployment rate in Utah had held steady at 3.6% during both June and July of 2026. This follows a broader period of fluctuation, including a rate of 3.7% in May and 3.8% in April.
Economic Resilience and Headwinds
Earlier this summer, the Utah Department of Workforce Services reported that the state's labor market showed resilience through job growth and low unemployment. In an employment summary released on August 21, 2026, Ben Crabb, the chief economist for the department, noted that while constrained hiring rates and slowing labor force growth presented headwinds, employers across major industrial sectors continued to expand payrolls.
Job Growth and Employment Totals
As of the July 2026 reporting period, Utah's nonfarm payroll employment had increased by approximately 1.4% over the previous 12 months. The Utah Department of Workforce Services reported that the state's total job count stood at 1,778,300 at that time. This growth was driven by a cumulative addition of 25,200 jobs since July 2025.
Sector-Specific Employment Gains
Private sector employment in Utah saw a year-over-year expansion of 1.9% through July 2026, which equates to an increase of 28,900 jobs. The growth was distributed across several sectors, with the largest gains occurring in professional and business services, which added 11,400 jobs. Education and health services followed with a 5,900-job increase, while the construction sector added 4,300 jobs.
Industry Losses and Fluctuations
While most major industry groups reported gains, some sectors experienced losses. The information sector saw a year-over-year decrease of 2,000 jobs, and the natural resources sector saw a decline of 300 jobs. Other sectors, such as manufacturing, showed a slight upward trend, with a 12-month percentage change of 0.4% as of July 2026.
Labor Force Composition
The July 2026 employment data from the U.S. Bureau of Labor Statistics indicated that approximately 64,800 Utahns were unemployed during that month. This figure was part of a labor force that included 1,769,270 people in Utah as of July 2026.
Broader Economic Context
The economic landscape in Utah remains characterized by steady employment levels. While the national unemployment rate was estimated at 4.1% in July 2026, Utah's rate remained significantly lower. Data from the U.S. Bureau of Labor Statistics highlights various sectors of the economy, including trade, transportation, and utilities, which saw a 0.4% increase in employment over the 12 months leading up to July 2026.
