Colorado unemployment falls again; hits lowest point since fall 2008
Colorado’s unemployment fell for the 33rd consecutive month in July and hit a nearly six-year low, with education and health services, construction and professional and business services driving the state’s job growth.
According to the Colorado Department of Labor and Employment report released Monday, Colorado added 5,500 non-farm jobs in July, pushing the unemployment rate down slightly to 5.3 percent from 5.5 percent in June.
The last time the state’s unemployment rate was at 5.3 percent was October 2008.
Colorado was one of only eight states that saw a drop in unemployment last month, the U.S. Labor Department said. Rates were unchanged in 12 states and rose in 30 states last month, even as employers in two-thirds of the states stepped up hiring. The trends reflect an increase in job-hunters nationwide as an improving economy has encouraged more people to seek work.
Nationwide, the U.S. Labor Department said, hiring rose in 36 states, fell in 13, and was unchanged in Iowa.
“At this point many economists are pointing to stronger growth in the second half of the year for the U.S., which should point to a good year for Colorado, particularly retail and tourism in Colorado,” said Broomfield economist Gary Horvath.
He noted, however, that with the unemployment rate and the number of unemployed trending down, critical labor shortages are developing in Colorado in many occupations.
“This is particularly critical to high tech industries,” said Horvath. ” In addition, it is impacting all industries in Northern Colorado which is experiencing rapid growth as a result of the extractive (oil and gas) boom.”
Horvath said workers are being raided from other companies and industries, which will ultimately drive wages up.
He said the Colorado construction market still appears to be solid and the value of residential housing is growing, although at a slower rate than last year.
“Appreciation in the housing and equity markets plays into consumer confidence,” he said. “If consumers feel their house and investments have appreciated, their wealth on paper is greater, and they are more likely to purchase goods and services.”
In its report Monday, the Colorado Department of Labor and Employment said that over the year, nonfarm payroll jobs have increased 65,600. Private sector payroll jobs increased 58,300 and government increased 7,300.
For July, the state labor department said the largest job gains were in education and health services, construction and professional and business services. The leisure and hospitality sector lost the most jobs.






