Colorado’s unemployment rate held steady for the second straight month at 3.4% in September, and hiring fell significantly but remained strong in the month, particularly in the tourism sector, according to an update. monthly update from the Colorado Department of Labor and Employment.
Colorado employers added 5,600 nonfarm payrolls last month, down from 14,600 added between July and August. Initially, the state estimated 12,400 jobs were added in August, but revised the number upward after receiving more reports from employers.
The private sector added 7,600 jobs last month, while the public sector lost 2,000. The strongest gains came from leisure and hospitality, up 3,500 jobs on the month, then other services, up 2,300 jobs, and education and health services, up 2,000.
Job losses were recorded in the construction and finance sectors, likely due to the slowdown in the housing market.
“From a labor market perspective, there’s no indication of a recession,” Ryan Gedney, senior labor economist with the state, said in a Friday morning press call.
He said jobless claims were not rising and the jobless rate remained at a historic low and was holding steady.
During the recovery from the pandemic, Colorado experienced a yo-yo trend of a very strong month followed by a weaker month in terms of hiring. But by pre-pandemic standards, adding 5,600 jobs in September would be a good showing.
The state has a 119.6% job recovery, measured against jobs lost in the early months of the pandemic. This is much better than the recovery rate in the United States, which stands at 102.3%.
Colorado was among 15 states that saw no change in their unemployment rate. According to the US Bureau of Labor Statistics, 19 other states saw an increase and 16 mostly large states saw a decrease.
Broomfield Economist Gary Horvath said the jobs report was encouraging on the surface, but noted that with the state’s fall weather, people should take advantage of the heat and sun and get prepare for cold and snow.
He said higher interest rates are weighing on the mortgage and housing sectors and inflation is causing consumer spending to decline. These headwinds should begin to manifest more in the weeks and months to come.