3,900 Nonfarm Payroll Jobs Added in January;
Unemployment Rate Rises to 4.7 Percent
Household survey data
- According to the survey of households, Colorado’s seasonally adjusted unemployment rate increased one-tenth of a percentage point in January to 4.7 percent compared to the revised December rate of 4.6 percent. The number of unemployed individuals grew by 2,600 over the same time period to 152,800. The national unemployment rate decreased one-tenth of a percentage point to 4.0 percent from December to January.
- Colorado’s labor force increased by 4,800 in January to 3,284,500. The share of Coloradans participating in the labor force increased to 68.0 percent in January, compared to 67.9 percent the month prior. The U.S. labor force participation rate was 62.6 percent in January, one-tenth of a percentage point higher than the month prior.
- The number of individuals employed in Colorado increased by 2,200 in January to 3,131,800, which represents 64.8 percent of the state’s 16+ population. Colorado’s employment-population ratio of 64.8 in January was unchanged compared to the December rate. The national employment-population ratio increased one-tenth of a percentage point in January to 60.1 percent.
Establishment survey data
- Employers in Colorado added 3,900 nonfarm payroll jobs from December to January for a total of 2,981,000 jobs, according to the survey of business establishments. Private sector payroll jobs grew by 1,800, while government rose by 2,100 jobs.
- Private industry sectors with significant job gains in January were: educational and health services (≈2,500), professional and business services (≈1,100) and manufacturing (≈1,100). Significant over the month private sector job loss occurred in construction (≈2,400) and leisure and hospitality (≈1,000).
- Since January 2024, nonfarm payroll jobs have increased 22,600, with the private sector growing by 7,600 and government adding 15,000 jobs. The largest private sector job gains were in educational and health services (≈5,900), trade, transportation, and utilities (≈4,400), leisure and hospitality (≈3,400), and manufacturing (≈1,400). During that same period professional and business services (≈4,000), information (≈3,200), and financial activities (≈2,000) payroll jobs declined. Colorado’s rate of job growth over the past year is 0.8 percent, behind the U.S. rate of 1.3 percent.
- Over the year, the average workweek for all Colorado employees on private nonfarm payrolls declined from 32.7 to 32.6 hours, while average hourly earnings grew from $37.42 to $39.80, three dollars and ninety-three cents more than the national average hourly earnings of $35.87.
Annual averages and benchmark revisions to 2023 data
The annual unemployment rate for Colorado was 4.3 percent in 2024, revised up from the previously published 3.9 percent. The U.S. unemployment rate in 2024 was 4.0 percent.
Colorado nonfarm payroll employment increased at an annual rate of 1.1 percent in 2024, or 33,200 jobs. The U.S. annual payroll jobs growth rate in 2024 was 1.3 percent.
In accordance with annual practice, both establishment and household survey data estimates for Colorado undergo a benchmarking process. The benchmark process results in revisions to estimates for prior years. Below are select revisions to 2024 establishment and household survey estimates. More information on the benchmarking process is available at the Bureau of Labor Statistics website.
Informational Section
All Colorado estimates from the establishment and household surveys, including greater geographic detail, are available at Colorado LMI Gateway. Estimates for all states and the nation are available at the Bureau of Labor Statistics.
For data visualizations, visit CDLE’s Labor Market Information on Tableau.
The February 2025 Colorado Employment Situation will be released at 8:00 AM on Friday, March 28, 2024. The full schedule of release dates for calendar year 2025 estimates is available at Labor Market Information.
Notice from BLS regarding Employment & Wages Data
On November 20, 2024, the Quarterly Census of Employment and Wages (QCEW) suspended publication of industry and substate data for Colorado due to data quality concerns with the second-quarter 2024 data. These data quality concerns were due to ongoing issues with the modernization of the state’s unemployment insurance (UI) system. Because the QCEW microdata are fundamentally a byproduct of state UI systems, QCEW data quality is sensitive to changes in these systems. The QCEW program resumed publication of Colorado data with the third-quarter 2024 release on February 19, 2025.
During the 2023 benchmark, BLS replaced Colorado’s sample-based estimates from April 2022 through June 2023 with administrative data derived from QCEW. BLS calculated employment levels for July 2023 through September 2023 by using the over-the-month percent changes of the estimates for those months because the preliminary version of third-quarter 2023 QCEW Colorado data available at the deadline for establishing the CES benchmark levels showed unusual movements.
As a result, for the 2024 benchmark, BLS replaced Colorado’s sample-based estimates from April 2023 through June 2023 and July 2024 through September 2024 with administrative data derived from QCEW. BLS calculated employment levels for July 2023 through June 2024 by using the over-the-month percent changes of the estimates for those months and a standard wedge methodology to address the break between the resulting June 2024 level and the July 2024 level derived from QCEW. Normal estimation procedures, including using new or revised microdata and updated birth-death factors, were resumed for October 2024 through December 2024. This process was also used for the Colorado metropolitan statistical areas.
For more information visit bls.gov.
Resources Mentioned