PROVO – The Provo-Orem area has the best regional economy in America, according to rankings released this week by the Milken Institute, and other Utah cities are not far behind.
Provo took the top spot from San Francisco, which dropped out of the top 10 in the nonprofit think tank’s annual rankings. Salt Lake City checked in at number 4 on the list, and Ogden jumped all the way from number 22 last year to number 9 for 2021.
And that is only just on the “big cities” list. Utah also performed well on the small town index, placing both Logan and St. George in the top five. Idaho Falls took the top spot among the small towns.
The Milken Institute says its annual rankings are based on “a results-based set of statistics,” including job creation, wage increases, and “high-tech GDP” growth.
“The best-performing metros have cohesive strategies that enable them to weather economic storms and use their assets more effectively,” he said. Those cities were mostly clustered in the Intermountain West and South, the Milken Institute noted, where affordable housing and broadband access converged with wage and job growth.
Phil Dean, senior research fellow in public finance at the Kem C. Gardner Policy Institute, said Milken’s results tie in well with what he observes about the Utah economy. “We have been the strongest state, in terms of economic recovery, since the pandemic,” Dean said. “We’re actually back to the general job growth, from December, in the state.”
Dean said there are “a number of factors” that have helped the tech industry in Utah with statistics like those from the Milken Institute. Many of the major Utah technology companies are located in Utah County, including Vivint Smart Home, Qualtrics, and Pluralsight.
In an emailed statement, Vivint, senior vice president of human resources Starr Fowler, said Utah has become a destination for professionals. “Utah is an entrepreneurial state and the people here are being genuinely invested in growing the Silicon Slopes and making the state a great place for technology,” said Fowler. “Historically, people along the Wasatch Front have been able to work as a stopover on their career path before heading to the East or West coast. Today there are plenty of big companies and early stage startups that you can really build a career here, along with great quality. of life. For me, it is an incredible place to raise my family in a beautiful setting with all my favorite outdoor activities just minutes away. ”
Having two major universities nearby helps, Dean said, as does Utah’s business-friendly climate. “We’re encouraging the creation and growth of businesses here,” Dean said, “and that’s not necessarily the case everywhere.” He said Utah must continue that policy and ensure that its staff are properly trained to maintain its benefits going forward.
Dean also said that housing affordability, or lack thereof, is “a risk” facing Utah in the future. “I think that’s something we should keep an eye on as we move forward,” he said. And he added that Utah should not forget the struggling people and industries, despite huge numbers and rave reviews from organizations like the Milken Institute.
“I think it’s important that, despite our successes, we look out for those who aren’t doing very well.”
The top 10 major metros in 2021 will be led by Provo-Orem, followed by Palm Bay, Florida; Austin, Texas; Salt Lake City; Raleigh, North Carolina; Boise; Phoenix; Nashville, Tennessee; Ogden-Clearfield; and Huntsville, Alabama.