County hit hard by layoffs, business closures and soaring demand for social services

While Tooele County escaped much of the economic turmoil that hit the nation in 2008, things in 2009 started to spiral downward, and there soon was no question that the recession had hit home.

The first toll taken was on local workers. A countywide unemployment rate that had averaged 3.8 percent in 2008 gradually rose to 7.1 percent by November 2009. That was well above the statewide November unemployment rate of 6.3 percent.

Major employers such as Detroit Diesel, Conestoga Woods, Quality Automotive, Chemical Lime (closed at the end of 2008) and US Magnesium all either laid off workers or cut back hours. Employment agencies that were begging for people to fill jobs two years ago reported being swamped with job hunters. Teenagers even found summer jobs harder to come by because of competition from adult workers.

The construction industry, which had already seen a large dropoff the year before, continued to decline in 2009. By October 2009, only 47 residential permits had been issued within Tooele City during the entire year — a 24 percent drop over the previous year, and a massive decline from the heyday of building within the city at the start of the decade. The real estate market also sputtered, with home prices dropping well below levels seen in 2005 and 2006.

Several small businesses closed up shop altogether, including Bajio Mexican Grill, Quiznos sandwich shop, Sonic Drive In, Inkley’s, Delicious fashion boutique, Deseret Sound Car Audio, and downtown furniture store the Budget and Clearance Center. For the stores that remained open, business was tough. Sales tax collected in Tooele County in the second quarter of 2009 alone declined by $18.5 million from the second quarter of 2008 — a 12 percent drop.

For municipalities dependent on sales tax revenue, that decrease meant budget cuts were inevitable.

Tooele City cut travel expenses and capital expenditures, froze employment and offered an early retirement enticement to employees. In Grantsville, the city council approved a budget that was $2.4 million less than the previous year, eliminating everything from overtime wages and cost-of-living increases for employees to all planned capital improvement projects. Earlier this month, Tooele County commissioners slashed the 2010 budget to $51.8 million — down 14.7 percent from 2009.

The effect of all the layoffs and cutbacks soon showed up in lines for social services.

Karen Kuipers, coordinator of Tooele County Relief Services, reported a growing number of homeless families. Lori Sandoval, director of the Tooele County Food Bank, saw the number of households served double from 30 to 60 a day since the beginning of the year.

“I see people every day in tears because they have never had to ask for help and don’t know how to ask,” said Kuipers. “These are good people, often with young families that are now facing an uncertain future.”

There were a few bright signs, such as international conglomerate Reckitt Benckiser opening a distribution center and hiring 60 employees, and Allegheny Technologies finally completing its Rowley titanium plant and bringing staff up to 100 people. But these weren’t enough to stem the tide of the overall economy.Tooele County went into 2009 with 1,236 people unemployed and actively looking for work, according to the Department of Workforce Services. By the end of November, that number had grown to 1,932 — a 56 percent increase.

Rep. Jim Gowans, D-Tooele, recently spoke of uncertainty in the economic future while discussing the state budget.

“We can see light at the end of the tunnel,” Gowans said. “But we don’t know is if it is daylight or the headlights of another train coming at us.”

Tim Gillie: tgillie@tooeletranscript.com The Rest of the Top 10 Stories of 2009: #2: Stansbury High opens up doors
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