Employment Growth in Colorado: A September Overview
In a modest surge, Colorado reported an addition of 500 jobs in September, as per the most recent employment figures released by the state labor department.
However, when focusing solely on private sector firms, the month concluded with a loss of 200 jobs.
This month was neither particularly fruitful nor disastrous. The delayed report, which had been postponed for several months due to the prolonged federal government shutdown, remains preliminary.
As is customary, labor statistics may undergo adjustments as employers respond belatedly to monthly government surveys regarding their payroll numbers.
While revisions are anticipated—August’s numbers were altered to reveal a gain of 6,000 jobs rather than the initially reported 3,300—not all sectors conform to national patterns.
One notable exception is the Professional and Business Services (PBS) sector, which encompasses professions such as accounting, engineering, legal services, and R&D.
Historically, Colorado has regarded PBS jobs highly due to their typically elevated educational requirements and compensation. Yet, this category had experienced a year of negative growth until September, which saw an increase of 1,600 jobs compared to a year ago.
According to Tim Wonhof, the director of Labor Market Information at the state Department of Labor and Employment, PBS marked “two consecutive months of job growth in Colorado despite national downturns.”
He noted that this sector “has traditionally been a beacon of strength within Colorado’s labor landscape, bolstered by the state’s relatively high educational attainment levels.”
Gary Horvath, an economist based in Broomfield, expressed cautious optimism, stating, “It is uplifting to see PBS, along with leisure, hospitality, and retail sectors, reporting positive gains, aided by an upward revision in August.”
Yet, he cautioned, “It is disheartening that six sectors showed declines, indicating a lack of uniform growth across many private sectors.”
These declining sectors encompassed mining, lodging, construction, and the “Trade, Transportation & Utilities” sector, which suffered the largest setback, losing 2,100 jobs from August to September.
Wonhof indicated that this trend aligns with September’s federal unemployment claims for workers in transportation and warehousing, which rose by 7.4%.
In a significant corporate move, Houston-based ConocoPhillips unveiled its intention to reduce its U.S. workforce by 25%, translating to approximately 3,250 positions.
Similarly, Safeway announced its intention to close 10 locations in Colorado, affecting over 600 employees, though efforts are being made to reassign staff to other branches.
Moreover, by October, UPS plans to conclude layoffs affecting 48,000 employees, according to its Q3 report. This move is part of a broader strategy aimed at enhancing automation and consolidating operational capacities.
Despite these drastic changes, UPS remains on the lookout for seasonal workers in anticipation of the holiday rush, as noted by spokesperson Karen Tomaszewski Hill, who mentioned that there were numerous job openings in Denver designated for this season.
Unemployment Rate Declines to 4.1% in September
In a positive turn, Colorado’s unemployment rate dipped by one-tenth of a percentage point to 4.1% in September, contrasting with the U.S. rate, which rose to 4.4%.
However, the state’s labor force contracted by 3,400 individuals, with the working-age population’s employment or job-seeking rate plummeting to 67.3%, signaling the lowest participation rate since November 2020. In September, Colorado reported over 3.1 million employed individuals, alongside 134,300 unemployed residents.
Notably, the unemployment figures for October will remain undisclosed, as data collection was compromised by the federal shutdown. While employers for October were surveyed, data availability has been delayed, leading to expectations of revised job growth statistics.
Wonhof remains hopeful, asserting, “A single data point does not dictate a trend,” and encourages careful long-term analysis of this data. The forthcoming jobs report for November is anticipated to be made public on January 7.
➔ Following a tumultuous year, experts forecast the trajectory of Colorado’s economy in 2026. Comprehensive insights reveal both optimistic and pessimistic projections regarding state economic conditions. >>
Recent Economic Developments in Colorado
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➔ Rising health insurance premiums loom over 225,000 Coloradans, as Senate subsidies fail to secure an extension. Those purchasing individual coverage may face a staggering 101% price hike by 2026.>>
➔ Did you truly spot gas for the astonishing price of $1.69 in Colorado? Yes, it actually occurred. Prices remain lower than the declining national average. >>
➔ Older adults on fixed incomes encounter increasing challenges to homeownership in Colorado, as the average annual cost of owning a home soars to $25,766, a staggering 20% above the national average. >>
➔ Telluride ski patrol members have rejected the resort’s compensation proposal, laying the groundwork for a potential holiday strike. The union, consisting of 72 members, voted against Telluride Ski & Golf’s final offering. >>
➔ The Denver City Council committee has advanced $50 million in funding for the Summit stadium after concerns around delays in investment emerged, prompted by the women’s soccer team’s exploration of alternative locations. >>
Additional Economic Insights
➔ Colorado is ranked as the sixth most regulated state while holding steady as the 11th best for business, per the latest Colorado Chamber scorecard.
These rankings largely derive from analyses conducted by external entities such as CNBC and US News, with internal evaluations from the Chamber’s report revealing regulatory burdens affecting business viability.
➔ In terms of rising expenses over the past two decades in Colorado, despite the usual increases, college tuition has skyrocketed by 300%, as highlighted in a recent study by the Common Sense Institute. Unlike stable, durable goods, this escalation significantly impacts household budgets across Denver. >>
➔ Swire Coca-Cola has announced plans to relocate its operations to Colorado Springs, introducing 170 new jobs as part of a significant $475 million investment in a new manufacturing facility. Construction is projected to commence in 2026. >>
Source link: Coloradosun.com.
