The Center Square) – Colorado ranked 41st among states in year-over-year job growth in March, according to a new report.
Common Sense Institute Colorado released the report, which showed the state during the same period saw its private-sector job growth decline by 0.2% and its nonfarm jobs drop by 0.3%.
Colorado has seen some of its economic momentum slip since the early 2020s, said DJ Summers, CSI’s director of communications and research operations.
But Colorado “is still among the better economies in the United States,” Summers told The Center Square. He noted the state ranked 17th in CSI’s Free Enterprise report.
According to Summers, Colorado’s domestic migration is among America’s worst, he said, noting that it used to be one of the most popular states to move to.
The report said only two of 11 industries in Colorado have grown over the last 12 months: health services and construction. The health service industry added 16,000 jobs, while construction work added 1,700.
Summers noted that when a state does not see broad job growth across industries, “something needs to be addressed.”
“Healthcare can be a good sign of economic progress when tied to inflow of domestic migration and job creation,” Summers said.
However, he said, if healthcare demand grows without people moving to Colorado, that “indicates that there’s more money simply being spent in the healthcare industry, which does not necessarily mean a net economic gain.”
He added that Colorado’s largest industries are tech and finance.
The finance industry lost 4,500 jobs, the most for any sector year-over-year, according to the report. On top of this, Colorado’s trade, transportation and utilities sector lost 4,300 jobs, and its manufacturing sector lost 3,700 jobs.
Regarding labor force participation rate, Colorado ranked ninth in the country year over year at 66.3%.
Summers said Colorado has a high labor force participation rate because residents are generally healthy and able to work. He added that people have to work because Colorado’s “relative affordability is fairly low.”
Summers noted CSI data shows Colorado is the ninth least affordable state.
According to the report, Colorado gained 1,400 jobs in March, with six of 11 industries reporting employment increases.
Summers described monthly job numbers as “volatile,” adding that longer-term employment statistics provide a better picture.
Colorado’s current unemployment rate is 3.9%, which ranks tied for 28th in America.
