The number of Colorado job postings outpacing the number of unemployed residents demonstrates a need for talent. Many employers creating jobs and experiencing an increased number of job openings struggle to find skilled labor.
Finding Colorado job seekers with relevant skills to succeed in a role who want to remain long-term with a company is challenging. Sourcing qualified candidates for in-demand jobs is essential in supporting the state’s future workforce needs.
Factors Impacting Colorado’s Workforce
The Colorado State Demography Office estimates that 400,000 state residents will retire between 2024 and 2034, resulting in an average of 40,000 additional jobs per year needing to be filled. Lower in-migration, declining birth rates, and a high school population expected to plateau and then decline over the next decade will increase the talent shortage.
Increasing Turnover
Many Colorado employees are changing jobs and careers, causing additional vacancies. According to the July 2024 State Job Openings and Labor Turnover Summary (JOLTS), released by the U.S. Bureau of Labor Statistics (BLS), Colorado ranked second in the nation in job turnover during the second quarter of the year. Combining high turnover rates with increasing unemployment creates a volatile labor market.
Although Colorado employers who offer higher wages to increase retention rates can attract more qualified candidates, many are unable to afford the same number of employees they had. The difficulty in hiring skilled labor is expected to increase as the number of retirees grows, high school graduation rates decline, and hiring budgets tighten.
Benefits of On-Demand Labor Pools
Due to the ongoing talent shortage, more Colorado employers are turning to on-demand labor pools to fill their hiring needs. The benefits include:
- Access to qualified talent: Background checks and employment tests verify each candidate’s education, skills, and experience, ensuring the ability to provide value in specific roles.
- Specialized skills: Hiring on-demand laborers with niche skills lets the company take on additional projects for greater revenue.
- Fast hiring: On-demand laborers can quickly onboard and begin producing, supporting smooth business operations.
- Scalability: Quickly hiring skilled labor during peak productivity or for special projects supports workforce flexibility. Adjusting staffing levels on demand helps companies optimize operations, control costs, and maintain a competitive edge.
- Cost-effectiveness: Because a staffing firm provides on-demand labor, employers are not responsible for benefits, payroll, taxes, unemployment, and related expenses. Reducing fixed labor costs frees up money for other priorities.
Tap Into On-Demand Labor Pools in Colorado
Job Store Staffing helps Colorado companies tap into on-demand labor pools and build ready-to-deploy talent pipelines. Contact us to discuss your staffing needs today.
