Colorado employment data paints a pretty bleak picture for employment in Denver

Colorado continues to create new jobs, but growth is uneven.

According to preliminary data from the US Bureau of Labor Statistics, 4,800 new jobs were created in July compared to the previous year. At 3.9 percent, the unemployment rate is higher than after the pandemic, but still relatively low.

This is all good news for job seekers in Colorado. But that's not the whole story, and the news isn't all good.

Denver, Colorado's largest metropolitan area and a major driver of economic growth, lost 9,600 jobs last year, data shows. It is the only metropolitan area in the state to lose jobs. Boulder and Colorado Springs each added more than 6,000 jobs.

“I don't think the data suggests Denver is imploding. I think it's more of a wait-and-see approach,” said Tim Wonhof, program manager with Colorado's labor market information team. “It says a lot about what happened during the pandemic and how we come out of it… Do people see Denver as the place to work? A lot of people are coming here and there aren't a lot of people downtown, and I think that's a factor we definitely have to deal with.”

It makes sense to look at what types of jobs are being lost in Denver. Construction jobs are declining sharply, a trend that began late last year. That could be due to the end of Denver's multi-year housing boom, Wonhof said.

Denver has also seen a recent loss of jobs in the leisure and hospitality sector, even as the state as a whole is adding jobs in this sector. The overhaul of the 16^th According to Wonhoff, the Street Mall is unlikely to help attract new employees to area restaurants.

“If you're in the mall now, who wants to sit in a restaurant with construction going on in front of their door? I think the sooner they get it done, the better,” Wonhof said.

The rise in the cost of living in recent years is also a drag on employment in the region, according to Paula Cole, an economist at the University of Denver. High housing costs in particular can deter people from moving to Denver or cause them to move away. Costs have risen across Colorado, but not to the extent seen in Denver.

“I think Denver in particular is having trouble with that,” Cole said.

Wonhof is not worried about Denver yet. The numbers could change throughout the year as more information comes in. The federal government's data is frequently revised.

But Denver's lackluster employment statistics have persisted for several months, suggesting it's more than just a temporary blip.

“I'm definitely watching Denver. It's going to continue to be an interesting place,” Wonhoff said. “If you compare it to before the pandemic, it's not really the same place.”