Colorado’s job market data has come under scrutiny after the Bureau of Labor Statistics released preliminary benchmark revisions for March. The revisions showed a significant decrease in the number of jobs reported in the state, with 72,000 fewer jobs than previously reported, representing a 2.5% decrease. The federal agency has noted that Colorado’s data has shown unusual movements, leading to the exclusion of the state’s data from summary statistics several times in the past year.
Former state economist Ryan Gedney has expressed concerns about the accuracy of the data, stating that it does not accurately reflect the state of the Colorado labor market. The Colorado Department of Labor and Employment attributes the issues to lower reporting rates from its Quarterly Census of Employment and Wages establishment, which dropped to 40% in September 2023 but rebounded to 89% by March 2024. The national average reporting rate is 96%.
The national job market revisions were also significant, with a decrease of 818,000 jobs nationwide, the highest since 2009. The economic think-tank Common Sense Institute has highlighted the importance of accurate data in the current economic climate, stating that revisions can make a difference between showing growth or declines in a state’s economy. The revisions have raised doubts about the economic picture drawn by monthly employment numbers reported over the past year.
While the data is preliminary and will not be finalized until next year, the discrepancies in Colorado’s job market numbers have raised concerns about the accuracy and reliability of the state’s employment data. Residents and policymakers will need to interpret the data with caution as efforts are made to address underreporting and ensure accurate reporting requirements are met.
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