Blog Post: Lowest Colorado Unemployment Rate Since 2001

Colorado’s labor market maintained last month’s momentum as the seasonally adjusted jobless rate edged downward two-tenths of a percentage point to 3.6 percent in March, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. “While job gains during the State’s economic recovery have been only moderate by historical standards, unemployment has still fallen steadily over the past four years,” noted Mares. The current jobless rate is the lowest since 3.5 percent was registered in June 2001. Last March the rate stood at 4.4 percent. 

 

Total employment and unemployment both fell in March. The number of employed Colorado residents, adjusted for normal labor force movements, dropped 12,200 over the month to 2,573,100. Last March an estimated 2,509,800 Coloradans were working. Unemployment declined 3,800 to 97,300 during the month, down 17,400 from the same period last year.

 

Local area labor market conditions tended to be favorable throughout much of Colorado as 38 counties reported falling unemployment rates over the month. The lowest rates were concentrated in the winter recreation areas – Pitkin, Summit, Routt, and Eagle counties all saw jobless rates of 2.6 percent or less. Costilla County posted the highest rate at 7.6 percent.   

 

According to the monthly survey of Colorado business establishments, total nonfarm employment increased 14,300 to 2,297,400 in March. The advance was about normal for March as ten of the State’s eleven major industry groups added workers. Great ski conditions combined with warmer weather along the Front Range to enable leisure and hospitality employment to grow by 4,300. Government added 2,700 positions and trade, transportation and utilities gained 2,100 jobs. Construction, buoyed by continued strength in non-residential construction, added 1,900 positions. Growth in employment services was the driving force behind the net gain of 900 in professional and business services. Natural resources and mining payrolls continued to expand, rising by 800. Other services and education and health services combined to add 1,100 positions, while small gains were seen in information and financial activities.    

 

Over the year, nonfarm wage and salary employment has grown by 42,500 or 1.9 percent. Three industries accounted for two-thirds of this expansion: professional and business services grew by 10,100; leisure and hospitality payrolls gained 9,600; and education and health services added 8,400. Job gains at the local level are responsible for the lion’s share of the 7,200 new positions in government. With an increase of 4,000, natural resources and mining, the State’s smallest sector, has added 500 more jobs over the past twelve months than trade, transportation and utilities, Colorado’s largest industry. Other services, a diverse collection of miscellaneous businesses, and financial activities were up 1,900 and 900, respectively.

 

Construction and manufacturing have each pared 1,200 jobs since last March. Information’s 700 job loss represents the industry’s smallest year over year decline since it began contracting in mid-2001.

 

The Bureau of Labor Statistics reported the nation’s unemployment rate fell one-tenth of one percentage point to 4.4 percent. Nonfarm payrolls were up 180,000 in March. Increases were found in construction, up 56,000 due to improved weather conditions; retail trade, up 36,000; and health care, up 30,000. Hiring in professional and business services was flat, while manufacturing employment, down 16,000, continued to shrink.

 

Source: Colorado Department of Labor & Employment