State Sees Net Job Loss, Lower Workforce Participation, However
July unemployment data from Colorado’s Department of Labor and Employment indicates the state saw its unemployment rate fall to 4.3% in July, down from 4.4% in June. Despite this, the state lost 2,200 net jobs during the month. However, the Denver Post noted that compared with July 2014, the state saw 50,200 additional jobs, or a 2% year-to-year increase. University of Colorado’s Brian Lewandowski noted that July was the fifth month in a row that the state showed year-to-year job growth of around 2%. Colorado’s state economist Alexandra Hall cautioned that July’s data might still be revised, and wasn’t a full picture of the state’s economic health. The Denver Business Journal noted that state data showed Colorado had a decline in the number of workforce participants in July to 2,812,700, down 10,200. Additionally, there were 7,900 new reports of unemployment for a total of 2,690,700. However, the state’s unemployment rate declined due to labor force contraction. Still, since July 2014 the unemployment rate has fallen from 4.8% to 4.3%, and remains well below the national average of 5.3%. July job gains were seen in the trade, transportation and utilities sectors, while job declines were largely seen in the education and health services sectors, along with construction and professional and business services.
What This Means For Small Businesses
Colorado’s employment data has been somewhat mixed this year, and this trend continued in July. Although the unemployment rate is declining, this appears to be due less to new hirings than to people leaving the workforce. Therefore, future job growth statewide appears less certain. At the same time, the state has one of the lowest unemployment rates in the US, meaning small business owners in Denver and across the state should rest assured they are doing business in a state with a strong economy.
Additional Reading
NFIB previously noted Colorado job growth.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
