Coloradans are facing an economic landscape with mixed signals as the state's unemployment rate saw a slight uptick in January this year. The Colorado Department of Labor and Employment (CDLE) reported a one-tenth percentage point increase from December, bringing the unemployment rate to 4.7 percent. Meanwhile, the national unemployment rate in January lowered to 4.0 percent, according to the Colorado Department of Labor and Employment.
The same report outlined a growth in Colorado's labor force, which expanded by approximately 4,800 people in January, reaching a total of 3,284,500. This growth is reflected in the state's labor force participation rate which increased slightly to 68.0 percent, a modest rise compared to 67.9 percent the month prior. The state's employment-population ratio remained steady, as both December and January recorded a figure of 64.8 percent. In contrast, the nationwide employment-population ratio saw a slight gain, growing from 60.0 to 60.1 percent.
On the job front, employers in Colorado reported the addition of 3,900 nonfarm payroll jobs between December and January. This was accompanied by job growth within several sectors, with educational and health services leading the pack with around 2,500 new jobs, as reported by the Colorado Department of Labor and Employment. These gains, however, were offset by notable job losses in fields such as construction which shed around 2,400 positions, and leisure and hospitality which lost roughly 1,000 jobs.
Year over year, the establishment survey data indicates nonfarm payroll jobs have surged by 22,600, where the government sector was responsible for the lion's share, adding 15,000 of those jobs. The private sector contributed with 7,600 new positions. Despite these gains, Colorado's rate of job growth over the past year lagged at 0.8 percent, which fell behind the U.S. rate of 1.3 percent. Average hourly earnings in Colorado also made strides, growing from $37.42 to $39.80, landing almost four dollars above the national average.
Facing the necessity of accuracy and accountability, the Bureau of Labor Statistics (BLS) had to suspend the publication of certain Colorado employment and wage data due to concerns over the quality of the second-quarter 2024 data. The root cause was identified as issues with the state's modernization efforts of the unemployment insurance system, which closely influence the QCEW microdata. After taking measures to address these concerns, BLS resumed publication with the third-quarter 2024 release on February 19.
Coloradans, policymakers, and analysts looking for more detailed employment data can access updated estimates through the Colorado LMI Gateway or view national figures on the Bureau of Labor Statistics website. The next monthly employment report for Colorado is scheduled for release on March 28. This data is crucial for understanding the employment situation in the state and aiding in decisions that could impact the workforce and economy at large.
