Unemployment Rate Falls to 3.4% in June;
4,500 Nonfarm Payroll Jobs Added
Household survey data
According to the survey of households, Colorado’s seasonally adjusted unemployment rate fell one-tenth of a percentage point in June to 3.4 percent. This marks the lowest rate since February 2020, when it was 2.8 percent. The national unemployment rate was 3.6 percent in June, unchanged from the prior three months.
Other highlights from the household survey:
Colorado’s labor force grew by 8,200 in June to 3,248,800. The share of Coloradans participating in the labor force improved to 69.5 percent last month, the highest rate since March 2020.
The number of individuals employed in Colorado increased by 11,000 in June to 3,137,000, which represents 67.1 percent of the state’s 16+ population. Colorado’s employment-to-population ratio is at its highest level since January 2009, which was 67.3 percent.
The Colorado counties with the highest unemployment rates in June were: Huerfano (5.7%), Pueblo (5.0%), Las Animas (4.8%), Fremont (4.6%), Otero (4.1%), and Rio Grande (4.1%). County-level unemployment rates are not seasonally adjusted and are directly comparable to Colorado’s June unadjusted rate of 3.2 percent.
Establishment survey data
Employers in Colorado added 4,500 nonfarm payroll jobs from May to June for a total of 2,857,400 jobs, according to the survey of business establishments. Private sector payroll jobs increased 2,400 and government added 2,100 jobs. Over the past 26 months, Colorado has added 412,300 nonfarm payroll jobs, compared to losses totaling 374,500 in March and April 2020. That translates to a job recovery rate of 110.1 percent, which exceeds the U.S. rate of 97.6 percent.
Since May 2020, Colorado’s private sector has grown by 413,400 jobs, compared to declines of 358,800 in early 2020. That translates to a job recovery rate of 115.2 percent and outpaces the U.S. rate of 100.7 percent. With June gains, the U.S. has fully recovered the private sector jobs lost in March and April 2020.
Other highlights from the establishment survey:
May estimates were revised down to 2,852,900, and the over the month change from April to May was a gain of 2,900 rather than the originally estimated increase of 5,400 (monthly revisions are based on additional responses from businesses and government agencies since the last published estimates).
Private industry sectors with significant job gains in June were: leisure and hospitality (~2,300), information (~1,000), and educational and health services (~1,000). Significant over the month private sector job loss occurred in financial activities (~1,900) and professional and business services (~1,800).
Since June 2021, nonfarm payroll jobs have increased 111,700, with the private sector growing by 108,500 and government adding 3,200 jobs. The largest private sector job gains were in leisure and hospitality (~32,400), professional and business services (~28,400), and trade, transportation, and utilities (~16,200). No industry experienced job loss during that same period. Colorado’s rate of job growth over the past year is 4.1 percent, which slightly lags the U.S. rate of 4.3 percent.
Over the year, the average workweek for all Colorado employees on private nonfarm payrolls decreased from 33.8 to 33.2 hours, while average hourly earnings grew from $31.60 to $34.21, two dollars and thirteen cents more than the national average hourly earnings of $32.08.
We are currently experiencing an issue with our website, www.colmigateway.com. Availability of revised estimates for May 2022 and preliminary estimates for June 2022 may be delayed. Please visit our Federal partner, the Bureau of Labor Statistics, for the most recent data available.
For data visualizations, visit public.tableau.com/app/profile/cdle.lmi
The July 2022 Colorado Employment Situation will be released at 8:00 AM on Friday, August 19, 2022.The full schedule of release dates for calendar year 2022 estimates is available at www.colmigateway.com.
This release provides information on industry employment and labor force statistics for June 2022, the most current estimates available from the Colorado Department of Labor and Employment. The reference period for the establishment and household surveys was the pay period or week that includes the 12th of the month.
The unemployment rate, labor force, labor force participation, total employment and the number of unemployed are based on a survey of households. The total employment estimate derived from this survey is intended to measure the number of people employed.
Nonfarm payroll jobs estimates are based on a survey of business establishments and government agencies, and are intended to measure the number of jobs, not the number of people employed. Other series based on this survey include private sector average weekly hours, average hourly earnings and average weekly earnings.
The business establishment survey covers about seven times the number of households surveyed and is therefore considered a more reliable indicator of economic conditions. Because the estimates are based on two separate surveys, one measuring jobs by worksite and the other measuring persons employed and unemployed by household, estimates based on these surveys may provide seemingly conflicting results.