According to the U.S. Bureau of Labor Statistics (BLS), Colorado’s civilian labor force included approximately 3,284,500 workers in January 2025. The seasonally adjusted unemployment rate was 4.7%.
Additional December 2024 civilian labor force statistics and unemployment rates not seasonally adjusted for Colorado cities and towns included:
- Colorado Springs: Civilian labor force 387,200; unemployment rate 4.6%
- Fort Collins-Loveland: Civilian labor force 219,300; unemployment rate 3.9%
- Boulder: Civilian labor force 205,700; unemployment rate 4%
- Greely: Civilian labor force 174,500; unemployment rate 4.7%
- Grand Junction: Civilian labor force 76,700; unemployment rate 4.8%
- Pueblo: Civilian labor force 75,900; unemployment rate 6%
Labor Shortages
The U.S. Chamber of Commerce reported in August 2023 that Colorado had 52 workers for every 100 open jobs. In contrast, there were 79 available workers for every 100 open jobs before the pandemic.
The Bureau of Labor’s September Job Openings and Labor Turnover (JOLT) summary showed Colorado among the top states for job separation. Twice in 2024, the state’s quit rate surpassed 3.5%, the previous high in 2021.
Many Colorado business owners say the policies passed in recent years were detrimental to their industry:
- The minimum wage has approximately doubled compared to 6 years ago.
- Employer mandates such as paid sick leave, family medical leave, and the Colorado Secure Savings Act, which requires employers with five or more employees and no existing qualified retirement plan to facilitate employee participation through automatic payroll deductions into a Roth IRA, impact wages and business growth.
- These policy changes give more power to employees than employers.
- Employees are incentivized to move to a different company rather than rise within their current organization.
Colorado has been taking steps to increase workforce development. Recent apprenticeship programs established in the state are helping build the future workforce.
The state has become a national leader in apprenticeship programs. Colorado Registered Apprenticeship Program Data from October to December 2024 showed 289 apprenticeship programs employing thousands of workers. Additional investments in training opportunities support the workforce development system in addressing labor shortages.
Lack of Affordable Housing
A lack of affordable housing in resort communities, rural areas, and metro markets deters employees from moving to Colorado. The January 2024 Denver Metro Housing Affordability Report showed the Common Sense Institute (CSI) Homebuyers Misery Index, which measures effective homebuying costs, worsened across many parts of the Denver metro area since the last CSI quarterly housing affordability report.
Colorado’s Free Enterprise Report 2024 edition ranked the state last in competitiveness relative to 49 states and the District of Columbia, emphasizing the need for ongoing strategic interventions. The key findings included:
- Escalating home prices and mortgage rates: The Homebuyer’s Misery Index increased in all counties in the second half of 2023 as mortgage rates increased and housing prices remained out of reach for most Coloradans.
- Impact on Homeowners: Declining affordability increased the hours the average homeowner in Colorado’s major cities had to work from 2013 to 2023 to cover monthly mortgage payments.
- Housing Unit Deficit and Future Housing Demand: The estimated housing unit deficit in the Denver metro area for 2023 ranged between 45,025 and 115,012 housing units.
- New Home Permits in 2023: The projected number of housing permits across the Denver metro area was below the range of permits needed to close the existing supply gap and meet projected housing demand by 2028.
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