Colorado’s economy is expected to grow, though obstacles remain.
Things are looking fairly good for Colorado’s economy for the next year, according to the 2017 Colorado Business Economic Outlook.
The report predicts continued growth for the state, with Colorado gaining 63,400 jobs in 2017. That’s a 2.4 percent growth rate, higher than the 2.2 percent growth (54,900 jobs) in 2016.
“The growth will be across every sector except natural resources and mining and again will support the strongest period of employment growth that we’ve had since the 1990s,” Richard L. Wobbekind told the Denver Post. Wobbekind is executive director of the Business Research Division at the University of Colorado Boulder’s Leeds School of Business, which produced the report.
Colorado’s construction industry, which had its busiest year in 2016, is expected to do well again overall. However, the report does note the worries caused by Colorado’s construction defects law.
“Apartments accounted for over 95 percent of multifamily units built since 2010, spurred by strong demand for rental housing and by developers reportedly avoiding building condominiums due to concerns about potential construction defects litigation,” the report says. “However, if municipalities’ attempts to alleviate developer concerns at the local level are successful, construction of condominiums may gradually increase.”
Retail spending will be favorable, the report predicts, though “rising costs for health care and education and more online purchases limit funds available to be spent at bricks-and-mortar retailers.”
The business and professional services sector is expected to add 9,200 jobs during 2017. The leisure and hospitality sector should add about 12,100 jobs.
However, Colorado farmers, ranchers and miners may have a more difficult year. The agriculture sector will post lower net income for the second consecutive year in 2017, according to the report, while employment in the natural resources and mining sector will decline.
The report also noted the importance of small business to the state, pointing out that: “In 2016, approximately 98 percent of all businesses in Colorado have fewer than 100 employees, employing 63 percent of the state’s private workforce.”
