Low jobless rate finally boosts wages

Unemployment in Colorado held steady at a near-record low of 2.4 percent in August, and the tight market for workers looks like it is finally pushing up wages, the state said Friday.

“While two months does not make a trend, this is encouraging news,” said Ryan Gedney, an economist with the Colorado Department of Labor and Employment, of the two-month streak of rising wages.

Over the year, the average workweek for all employees on private nonfarm payrolls increased from 33.8 to 33.9 hours and average hourly earnings increased from $26.60 to $27.41.

The number of people actively participating in the labor force increased 9,800 over the month to just under 3 million, according to a survey of households by the U.S. Census Bureau. The number of people reporting themselves as employed increased 8,000 to 2.9 million, causing the number of unemployed to

increase by 1,800.

The unemployment rate was unchanged from July at 2.4 percent due to rounding. The national unemployment rate increased one-tenth of a percentage point in August to 4.4 percent.

Colorado had the lowest unemployment rate in the country from March to June at 2.3 percent though North Dakota tied the state in June, but Colorado’s rate climbed to 2.4 percent in July. North Dakota’s rate has held at 2.3 percent.

Alaska had the highest unemployment rate in the country last month at 7.2 percent, the U.S. Bureau of Labor Statistics reported.

Employers in Colorado added 4,400 nonfarm payroll jobs from July to August for a total of about 2.7 million jobs, according to a survey of business establishments. Private sector payroll jobs increased 2,700 and government employment increased 1,700, reflecting a hiring spurt as teachers returned from summer break.

The largest over the month private sector job gains were in professional and business services, and other services. The largest over the month declines were in leisure and hospitality, which shed an unexpectedly large 3,800 jobs.