Employment growth in Utah appears to have peaked and is expected to grow at a slower rate over the next few months, according to monthly data from the Department of Workforce Services.

The number of non-farm payrolls in Utah grew at a slower rate, up 4.7 percent, or 53,900 new jobs last month from a year ago, with sectors such as construction, and professional and business services continuing to be strong employers in a tight labor market. The state's employment growth rate was 4.9 percent in June.

Mark Knold, senior economist for the Department of Workforce Services, sees Utah's employment growth rate, which has been climbing since 2003, receding and moving toward the lower 4 percent range by year-end.

"Utah's low unemployment rate implies full employment in the labor market, to the point where finding additional workers for more job expansion may become restrictive," Knold said. "The national economy is slowing a bit, which slows demand for business activity, and in turn workers. This is bound to have a small trickle-down effect upon Utah."

Utah's seasonally-adjusted unemployment rate was 3.4 percent in July, down 0.8 percent from 4.2 percent a year ago. About 44,000 Utahns were unemployed in July compared with 52,600 last year.

Amid a slowdown in the national housing market, construction employment continues to be in high gear in Utah, adding 12,700 new jobs in July, or up 14.8 percent from a year ago.

Knold cited continued strong in-migration population growth and bullish expectations about business growth in the West Coast states including Utah.

"Businesses are putting lots of projects on the table. Manufacturers are putting factories in the West Coast. Case in point, Kraftmaid, an Ohio-based company, that recently opened in Utah," he said.

Professional and business services is another big employer, adding 12,200 new jobs over the past year, up 8.2 percent. Half of the new jobs added are in the high-paying professional and scientific area including legal jobs, engineering, architecture, computer specialties, scientists and researchers. The other half is in employment services including production, transportation, office, administrative support and health care.

Manufacturing, which accounts for 10 percent of Utah's employment, has been losing steam as more manufacturers offshore production to lower wage countries. But in the west coast states including Utah, manufacturing employment bucked the national trend, showing a 3.1 percent growth in July.

Statewide, trade, transportation, and utilities added 7,600 new jobs over the past year, while the leisure and hospitality industry grew 2.9 percent, or added 3,000 new jobs. Financial services grew 4.9 percent, or added 3,400 new jobs.