(The Center Square) – Unemployment is low, job openings are high and the labor force is growing, according to a report on Colorado’s business and economic indicators.
“The Quarterly Business & Economic Indicators” is produced by the Business Research Division of the University of Colorado’s Leeds School of Business on behalf of the Colorado Secretary of State Jena Griswold. The second quarter report for 2023 revealed several items indicative of a positive environment and some showing a gradual slowing of the economy.
New businesses filing documents with the secretary of state increased 39.1% compared to the second quarter of 2022, but fell 1.6% compared to the previous quarter. A total of 54,890 new businesses, mostly LLCs, filed to do business in Colorado during the second quarter.
“A fee credit that reduced limited liability filing fees to $1 likely contributed to the surge in filings,” the report stated.
Renewals for existing businesses – 171,081 – declined .6% compared to last year’s second quarter and 11.8% compared to the first quarter of 2023.
“Evidence suggests this is a signal of supply constraint rather than easing demand, as well as a data reporting issue that is understating Colorado’s job totals,” the report stated.
While the number of jobs added to the Colorado economy this year is favorable, they don’t compare with 2022, which had the highest rate in 26 years. Colorado added 114,000 jobs last year and the 4.1% growth rate was fastest rate since 1997. The state averaged 3,300 new jobs during the first two quarters in 2023, compared to 5,900 during the same period in 2022.
Colorado’s employment increased by 42,400 so far in 2023, 1.5% higher than in 2022 and ranked 44th in the nation. The report said the largest annual percentage increases were in leisure and hospitality, mining and logging, and government. Losses in jobs compared to last year were in financial activities, information, trade, transportation, utilities and construction.
Colorado’s labor force participation rate was 68.7%, the fourth-highest in the nation. The state’s labor force grew 1.4% compared to last year, ranking it 14th in the nation.
The report found gasoline prices in the state were $3.96 per gallon in July, down 18.9% compared to last year but up 10.7% since April.
While the national inflation rate slowed to 3% compared to last June, the consumer price index in the Denver-Aurora-Lakewood region increased 5.1% compared to last May. Core inflation increased 5.6% in the Denver region.
