Colorado unemployment rate dips after holding steady for three months
After stalling for much of the year, Colorado’s seasonally-adjusted unemployment rate fell to 6.2% in May, as employers added 17,100 nonfarm jobs, with the bulk of the hires coming in leisure and hospitality.
“This breaks a three-month streak of where the unemployment rate had held steady at 6.4%,” said Ryan Gedney, a senior labor economist with the Colorado Department of Labor and Unemployment, which released its monthly employment update on Friday.
That drop in the number of unemployed workers, defined as those without a job actively looking for work, fell from 204,000 to 198,100 on a seasonally adjusted basis. Colorado’s unemployment rate remains above the U.S. unemployment rate, which fell from 6.1% in April to 5.8% in May.
The share of Coloradans participating in the labor force in May was almost back to February 2020 levels — 68.6% vs. 68.7%. But the 64.6% of the adult population actually employed remains below the 66.8% of adults employed before the pandemic.
Of the 17,100 nonfarm payroll jobs added last month, 16,300 came in the private sector while government employers added 800 jobs. Leisure and hospitality, which includes hotels, restaurants and arts and entertainment venues, added 14,400 jobs, accounting for the bulk of May hires. Trade, transportation and utilities, which includes retail, added 3,300 jobs, while professional and business services gained 2,600 jobs.
Other services, financial activities, educational and health services and natural resources were the sectors with the biggest losses in May.
Over the past 13 months, Colorado has gained back 265,200 of the 375,800 nonfarm payroll jobs lost between February and April of last year, which translates to a job recovery rate of 70.6%, Gedney said. That is ahead of the U.S. recovery rate of 65.9%.
“Colorado’s labor force participation rate has returned to pre-pandemic levels, partially driving a slower recovery for the unemployment rate. While the state is benefiting from a return to domestic travel, downtown areas may lag as businesses allow more remote work and business travel returns slowly,” the Office of State Planning and Budgeting said in a separate release Friday detailing its June forecast.
The Colorado counties with the highest unemployment rates in May were: San Miguel at 11.4%, Pitkin at 8.5%, Huerfano and Pueblo both at 8.0%, and Gilpin and Summit, both at 6.9%. County-level unemployment rates are not seasonally adjusted and Colorado’s unadjusted rate was 5.7% in May.
Pitkin and Summit counties saw an uptick in unemployment as the ski season came to an end, Gedney said.
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