Halfway through 2024, Colorado’s economy remains resilient in some areas while exceeding expectations in others, new data finds. 

The University of Colorado Boulder released its midyear economic update Thursday which found slight increases in the state’s growth domestic product (GDP), employment and overall population.

“Based on both the quantitative and qualitative information we have received we are optimistic on a continued but slower growth path for Colorado,” said Richard Wobbekind, senior economist and faculty director of the Business Research Division. “The recent GDP numbers show some positive support for our view.”

The review evaluates observed data through 2024 and updates expectations for the remainder of the year. Information is compiled from remarks made by Colorado Business Economic Outlook Estimating Group chairs at a roundtable meeting held in June.

“The national economy is defying expectations in 2024, with GDP, employment, and income outperforming growth expectations set last fall, and inflation is notably improving,” Wobbekind wrote in the report.

Employment 

On the national level, the labor market remained strong through the first half of 2024, though not without signs of slowing. The Bureau of Labor Statistics reported the job openings rate increasing slightly to 4.9% from April to May but also showed a year-over-year decline of 1.2 million job openings. 

Heading into 2024, the Colorado Business Economic Outlook projected growth of 49,600 jobs, but the revised outlook for Colorado employment growth in 2024 is 49,600.

The highest employment growth is expected in the natural resources/mining, government, education and health service industries.

Concurrently, the information, construction/trade and transportation/utilities industries are expected to decline.

The Colorado Springs metropolitan area reported a year-over-year employment growth of 1.8%. 

Tim Vanderhoof, vice president of economic development with the Colorado Springs Chamber of Commerce, attributed this growth to a combination of national economic trends along with strong local factors. 

Specifically, he highlighted developing job sectors in advanced manufacturing, aerospace and cybersecurity thanks in large part to the CHIPS Act as the most recent indicators for economic development.

The act, signed into law in 2022, invested over $50 billion into domestic research and development of semiconductors while also providing a tax credit for its manufacturing.

He added that competing contract bids with the Department of Defense amongst private companies has been and continues to be a major factor in the local economy. 

“That’s really what attributes to the job creation and capital investment that we see in the area here,” he said. 

Colorado’s unemployment rate of 3.8% remains slightly below the national average 4.1%. 

GDP

Colorado’s nominal GDP was $539 billion in the first quarter of 2024, making it the 13th-largest in the country. This was led by the real estate, rental/leasing, government and professional/business service industries.

When adjusted for inflation, the actual GDP increased at a seasonally adjusted annual rate of 2.3% for the quarter and at 3.3% year-over-year.

The largest gains reported during the year came from agriculture, forestry, fishing, and hunting industry at 68% followed by mining, quarrying, oil and gas extraction at 13% and retail trade at 8%. 

Bill Lewandowski said this growth was largely due to the volatile nature of the industries themselves, reflecting national trends. 

“Energy is an industry we’re seeing a lot of activity right now, for example, which means more job growth,” he said. 

Population

According to the State Demography Office, Colorado’s population increased by approximately 36,500 in 2023, reaching a total of 5.8 million by the end of the year. A slowdown in births, a minor decrease in deaths and migration were the factors identified for recent population change.

Although net migration for 2023 was lower than the forecasted 35,000 at only 20,000, it is still expected to increase slightly over the next 5 to 7 years due to the demand for new jobs in the state and a projected 40,000 retirements each year.

Despite recent years of volatility in economic industries nationally, Lewandowski said the state has often performed better than its projections.

“Colorado is outperforming the average state and this is now a long-term trend for us,” he said. “And I would still expect us to continue that going forward.” 

The report in its entirety can be viewed here.