Blog Post: Colorado Employment Remains Steady

Colorado’s labor market showed few changes in January as the State’s seasonally adjusted unemployment rate edged upward one-tenth of a percentage point to 4.1 percent, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment.  “The Colorado labor market began the year on a steady note with unemployment remaining relatively low and job growth expanding at a moderate pace,” noted Mares.  Last January the unemployment rate stood at 4.7 percent. 

Most major labor market indicators were positive in 2006.  Revised labor force estimates put Colorado’s 2006 annual average jobless rate at 4.3 percent, down from the previous year’s average of 5.1 percent and the lowest since the 3.8 percent recorded in 2001.  Total employment expanded 100,200 last year while the average number of unemployed residents fell 16,600.  First-time claims for unemployment insurance declined about 11 percent in 2006.

After adjusting for normal seasonal labor force movements, the estimated number of employed Coloradans decreased 17,000 in January.  Despite the loss, total employment remained nearly 69,000 higher than a year ago.  Unemployment rose 2,100 during the month to 108,600, down 13,100 from last January. 

The count of wage and salary jobs advanced about 52,800 or 2.4 percent in 2006.  The increase was the third in as many years and the greatest since nonfarm employment grew 3.8 percent in 2000. 

Results from the monthly survey of Colorado businesses showed that the estimated number of nonfarm jobs declined 53,400 to 2,267,100 in January as ten of the State’s eleven major industry groups lost jobs.  However, the decrease was typical for the month and primarily due to seasonal losses in education, trade, and construction.

Losing industries were led by trade, transportation, and utilities, down 17,600, with post-holiday layoffs in retail trade accounting for 14,200 of the pared positions.  Seasonal declines in the state education subsector caused government employment to trend down 11,700.  Construction payrolls lost 8,400, as the normal drop in building activity was exacerbated by snowy weather.  However, professional and business services fell by a smaller than typical 8,700 workers, probably due to greater than normal hiring of snow removal operators during the month.  Manufacturing and financial activities trimmed 2,400 and 2,000 jobs, respectively. 

The estimated number of nonfarm jobs is up 46,000 or 2.1 percent since last January.  Nearly eighty percent of this growth has occurred in four industries: professional and business services, up 14,100; leisure and hospitality, up 9,800; education and health services, up 8,900; and natural resources and mining up 3,700.   Trade, transportation, and utilities, the State’s largest industry, added 3,600 new jobs over the past twelve months. 

According to the Bureau of Labor Statistics, the nation’s seasonally adjusted unemployment rate was little changed during the month.  At 4.6 percent, the January rate matched the annual average jobless rate for 2006.  Nonfarm payrolls increased 111,000 last month with gains concentrated in health care, food services and construction.  For all of last year the number of wage and salary jobs rose 2,468,000 or 1.8 percent.

Source: Colorado Department of Labor & Employment