Colorado unemployment up slightly to 3.1 percent

U.S. unemployment at 3.7 percent, its lowest mark since Dec. 1969

Colorado’s unemployment rate has run significantly below the rest of the country for more than four years, allowing the state to post a bigger help wanted sign, one that attracted workers from other states, especially millennials starting their careers. That gap is now narrowing. Colorado’s unemployment rate rose to 3.1 percent in September from 2.9 percent in August, according to a monthly update Friday from the Colorado Department of Labor and Employment.

Over the same period, the U.S. unemployment rate dropped from 3.9 percent to 3.7 percent, its lowest mark since December 1969.

In early 2017, Colorado’s unemployment rate was two percentage points below that of the rest of the country, and earlier this year it has been just over one full percent age point below. The difference is now down to 0.6 percentage points, the smallest gap since January 2014.

“If the gap between the Colorado and U.S. unemployment rates is minimal, such as it is now, people may be inclined to stay where they are or to shop around,” said Gary Horvath, a Broomfield economist. “There are many great places to live with more affordable housing and less congestion than Denver and Boulder.”

But for workers coming from more expensive states such as California, Colorado still looks like a bargain and they might keep coming as long as there is a job for them, he added.

The state’s higher unemployment rate doesn’t reflect weak job growth, and labor markets here remain supertight. Employers in the state added 5,100 nonfarm jobs last month, putting the yearly gain at 77,200, according to a survey of establishments.

Education and health services and financial activities added the most jobs in September. Manufacturing hiring was also strong. Mining payrolls, which are dominated by oil and gas production, jumped 2.5 percent monthovermonth, the biggest percentage gain of any category.

The unemployment rate comes from a separate household survey which showed 5,300 more people describing themselves as actively participating in the labor force. But the survey found that only 1,300 more people described themselves as employed last month. That added 4,000 to the count of unemployed, bringing it to 94,500, its highest level since August 2016.

Over the year, the average workweek for all employees on private nonfarm payrolls increased from 33.5 to 34.3 hours and average hourly earnings increased from $27.77 to $29.40, according to the report.