Data shows Colorado created fewer jobs last year than previously reported – The Journal

The latest labor market numbers from the U.S. Bureau of Labor Statistics contain an unwelcome surprise for Colorado residents.

The data shows that Colorado added 72,700 fewer jobs in the 12 months ending in March than previously reported — roughly the number of seats at Empower Field at Mile High.

Monthly wage estimates are not an exact science. The numbers often change as more complete information comes in. But this week's revision was unusually large. The data shows that the U.S. added 818,000 fewer jobs than previously estimated. That means the labor market across the country is significantly weaker than previous numbers suggested. Economists are watching employment statistics for signs that U.S. regulators are risking a recession by waiting too long to cut interest rates.

The BLS regularly revises its monthly wage estimates based on information it receives from government unemployment insurance records. The updated figures are still preliminary and will not be finalized until next year.

Colorado had to accept by far the largest downward revision of all states. Missouri had the second largest revision, with 54,200 fewer jobs than originally reported.

Colorado accounted for nearly 9% of all U.S. revisions, which is much more than one would expect given the size of the state's labor pool. Colorado represents less than 2% of the national labor force, according to Tim Wonhoff, program manager for Colorado's Bureau of Labor Market Information. That means Colorado's share of total revisions should be about 16,000, Wonhoff said.

“Colorado's revisions look higher than we would have expected,” Wonhoff said in an emailed statement. “We are investigating this and working with national partners to understand the estimate and identify potential root causes.”

The Colorado Department of Labor has been struggling with errors in its labor market data since last year. An overhaul of the unemployment insurance system resulted in data collection errors, making it difficult to get a complete picture of what is actually happening in the state's labor market.

The problem is improving, but data is still incomplete. The state relies on companies to report job gains and losses, but education is needed “to ensure that employers are meeting reporting requirements in a timely and accurate manner.” The state Labor Department continues to “manually estimate to avoid underreporting and late reporting,” according to Wonhoff.

Preliminary monthly data show Colorado's annual job growth was 1.5% in July. If the newly updated data is accurate, Colorado's job market could actually be shrinking.

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