Colorado’s job growth shows gradual signs of recovery while unemployment stalls

Colorado is taking a break from its climbing unemployment rate thanks to steady figures over the last month, though an increase in new jobs could indicate recovering job growth rates.

Colorado’s 4.8% unemployment rate remained unchanged from March to April, sitting above the national unemployment rate of 4.2%. The state’s 4.8% rate marks the highest Colorado has seen since September 2021.

While the increase of one-tenth of a percentage point wasn’t enough for economists to raise any significant alarms, the unemployment rate has consistently crept closer to the 5% cap that many economists typically consider full employment.

However, April employment reports from the Colorado Department of Labor and Employment show a better job growth outlook with an added 8,400 total nonfarm jobs — up 800 from the number of jobs gained in March — and 6,900 private sector jobs.

This is good news for Colorado’s job market, which recorded a loss of 11,600 nonfarm jobs in February after a weak gain of 500 jobs in January. This could signal gradual recovery from last month’s 0.1% job growth rate, which now sits at 0.8% over the past year. The U.S. rate is notably higher at 1.2%, and has surpassed Colorado’s growth rate in all of the past 13 months.

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As of April 18, Colorado has the sixth highest unemployment rate out of all 50 states and Washington D.C., with three other states matching its 4.8% rate according to data from the U.S. Bureau of Labor Statistics.

The 67.8% of Coloradans participating in the labor force also remained unchanged over the last month, while the U.S. labor force participation increased to 62.6% in April. When Colorado’s labor force participation rate reached 67.8% in March, it marked the state’s lowest rate since October 2022.

The state employment-population ratio of 64.5% for April is down from 65.3% one year prior, according to the report.