Colorado employers added a net 5,000 non-farm payroll jobs to the state’s economy in June — more than 16 times the 300 added in May, and on par with the average over the past 12 months.
But the unemployment rate still increased to 3.7 percent because of the combined increase in labor force and decrease in number of people reporting themselves as employed. Three hundred people joined the labor force, but 8,800 people no longer counted themselves as employed, according to preliminary data released Friday by the Colorado Department of Labor and Employment.
“The increase in unemployment rate can actually be seen as a good sign because the pool of available workers has grown,” labor department economist Ryan Gedney said. “Employers are having a difficult time filling job openings. They have a ton of openings, but can’t find anyone to fill them.”
The increase in labor force would give employers more choice among candidates, making the job market more competitive. It’s typical for the labor force to grow during summer months, Gedney said, in part because “school’s out, and kids are typically seeking employment.”
He called Denver one of the “bright spots” for employment nationally. Metro Denver, which accounts for about 55 percent of Colorado’s employment, shows growth rates trending 3 percent to 4 percent for the last year, boosting numbers statewide. Colorado has been a top-five state in job growth since 2012, Gedney said.
“It’s the strongest, most consistent growth we’ve seen since the mid-’90s,” he said.
In June, private sector payroll jobs in the state increased by 5,100, while government jobs decreased by 100. Construction added 2,700 jobs and professional services gained 2,100 both on a seasonally adjusted basis. Leisure and hospitality had the largest over-the-month decline with 1,500 fewer jobs added than expected for the month.
Over the year, mining and logging was the only sector that experienced a decline.
Colorado’s unemployment rate of 3.7 percent remained the seventh-lowest in the country, according to Bureau of Labor Statistics data. That’s down from 3.9 percent this time last year. The national unemployment rate was 4.9 percent in June, down from 5.3 percent a year ago.
