Colorado’s Unemployment Rate Exceeds National Average
Colorado’s unemployment rate rose to 4.3% in November, surpassing the national rate of 4.2%, according to a report from the Colorado Department of Labor and Employment. This marks the first time since December 2021 that Colorado’s jobless rate has been higher than the national average, a trend reflecting wider labor market challenges.
The increase of two-tenths of a percentage point from the previous month signals a shift, with Colorado joining six other states experiencing rising unemployment rates in November. Over the past year, the state’s unemployment has climbed from 3.7% in January, raising some concerns but not alarm. Bill Craighead, the program director for the UCCS Economic Forum, noted that while there are signs of softness in the labor market, the current unemployment level remains relatively low.
In November, Colorado saw a decrease of 4,900 employed individuals, bringing the total to approximately 3.1 million. The labor force participation rate remained steady at 67.9%, contrasting with a slight decline to 62.5% in the national rate.
Employment figures indicate a drop of 3,900 nonfarm jobs, with a private sector reduction of 5,500 jobs, though government employment saw an increase of 1,600 jobs. Craighead highlighted the impact of higher interest rates on the construction and real estate sectors, which are particularly sensitive to economic shifts. He added that while home sales have seen a recent uptick, the overall market remains sluggish.
Looking ahead, the University of Colorado Boulder’s Business Research Division projects continued economic growth at a slower pace, estimating job growth of 46,800 in 2024 and 36,700 in 2025. All industries, except information, are expected to add jobs during this period, although the pace of growth remains uncertain due to national economic factors. The report underscores a cautious outlook for Colorado’s economy as it navigates evolving challenges.