North Dakota passes Colorado for lowest rate

Colorado has lost bragging rights to the country’s lowest jobless rate, after the unemployment figure ticked up to 2.4 percent in July from 2.3 percent in June, according to a monthly update from the Colorado Department of Labor and Employment.

North Dakota, which tied with Colorado in June, now claims that spot with a 2.2 percent unemployment rate. Nationally, the U.S. unemployment rate stands at 4.3 percent in July, down from 4.4 percent in June.

The number of people describing themselves as employed in the state rose 9,400 to 2,911,600 in July from June. But the number of people active in the labor force rose by a larger 13,000. The number of unemployed rose by 3,700, according to the report. That isn’t necessarily a bad thing. Colorado employers added 3,600 nonfarm jobs in the month, which contributed to a 1.7 percent rate of job growth over the past year. If more workers were available, the state probably would be seeing stronger job gains, said Gary Horvath, a Broomfield economist.

“Over the past year, Colorado developers and businesses have announced plans that indicate there is demand for workers that cannot be addressed because of the small labor pool. In other words, the 1.7 percent rate of growth does not reflect the potential strength of the economy,” Horvath said.

Of the 3,600 jobs added on a seasonally-adjusted basis last month, private sector employers provided only 100 and governments added 3,500. The steepest losses between June and July came in trade, transportation and utilities, which dropped 1,900 jobs, and professional and business services, which shed 1,100. Private sector hiring was strongest in construction, up by 1,900 jobs; financial activities; up by 1,700; and information, up by 1,100.

Employers seem to be boosting hours and pay in response to the tight market. The average workweek for all employees on private nonfarm payrolls increased from 33.8 to 34.4 hours, and average hourly earnings increased from $26.62 to $27.72, which represents a 4.1 percent jump in hourly pay.

“We will have to see if this turns into a trend,” said Ryan Gedney, a senior labor economist with the state.

Over the year, Colorado employers have added 43,400 jobs, with 39,500 coming in the private sector and government accounting for 3,900 jobs. The largest private sector job gains have come in trade, transportation, and utilities; leisure and hospitality; and education and health services, while manufacturing was the only sector to lose jobs over the past year.