While the national unemployment trends showed positive signs, Colorado faced a slight setback in the job market towards the end of 2024. According to the Colorado Department of Labor and Employment, the state's unemployment rate ticked up to 4.4 percent in December, up from 4.3 percent in November. This is in contrast to a nationwide decrease in unemployment rates, which edged down from 4.2 to 4.1 percent over the same period.
Despite the increase in joblessness, not all indicators were gloomy. Colorado's labor force saw marginal growth, adding roughly 1,800 individuals in December. However, this was coupled with a decrease of 3,300 in the number of people employed across the state. It's essential to note that these figures stem from household survey data, and while the employment-population ratio saw a decrease to 64.9 percent, it still stood over the national ratio of 60.0 percent.
The job landscape in different sectors presented a mixed picture. The press release highlighted that the professional and business services sector alongside manufacturing witnessed modest job gains in December, each adding approximately 1,300 and 1,100 jobs respectively. On the flip side, sectors such as leisure hospitality, and financial activities experienced significant losses, shedding an estimated 1,300 and 1,200 jobs respectively.
Looking at the year-over-year statistics, Colorado's nonfarm payroll jobs rose by 48,600 from December 2023, with educational and health services leading the charge, adding roughly 12,000 jobs. The private sector was the primary driver of this growth, contributing 32,600 jobs, while government roles also expanded, increasing by 16,000 positions. While these numbers may look promising, Colorado's information sector did buck the trend, facing a contraction with a decrease of about 3,800 jobs since December 2023.
A notable aspect of the employment landscape was the improvement in wages. The average hourly earnings for Coloradans increased over the year, moving from $36.94 to $39.63. This not only surpassed the national average hourly earnings, which was recorded at $35.69 but also reflected a growth that outpaced the US job growth rate. Colorado's job growth rate stood at 1.6 percent over the past year, a hair above the national rate of 1.4 percent.
However, the transparency of employment data is facing a challenge heading into 2025. According to the Colorado Department of Labor and Employment, the Bureau of Labor Statistics (BLS) has opted to suppress Colorado's data due to quality concerns linked to updates in the state's unemployment insurance system. Consequently, the CDLE won't be publishing its employment data in March along with the BLS as is typically done. The CDLE has communicated its commitment to high-quality data and is working with the BLS to minimize disruptions for future releases.
