3,900 Nonfarm Payroll Jobs Added in January; Unemployment Rate Rises to 4.7 Percent

Household survey data

• According to the survey of households, Colorado’s seasonally adjusted unemployment rate increased one-tenth of a percentage point in January to 4.7 percent compared to the revised December rate of 4.6 percent. The number of unemployed individuals grew by 2,600 over the same time period to 152,800. The national unemployment rate decreased one-tenth of a percentage point to 4.0 percent from December to January.
• Colorado’s labor force increased by 4,800 in January to 3,284,500. The share of Coloradans participating in the labor force increased to 68.0 percent in January, compared to 67.9 percent the month prior. The U.S. labor force participation rate was 62.6 percent in January, one-tenth of a percentage point higher than the month prior.
• The number of individuals employed in Colorado increased by 2,200 in January to 3,131,800, which represents 64.8 percent of the state’s 16+ population. Colorado’s employment-population ratio of 64.8 in January was unchanged compared to the December rate. The national employment-population ratio increased one-tenth of a percentage point in January to 60.1 percent.

Establishment survey data

• Employers in Colorado added 3,900 nonfarm payroll jobs from December to January for a total of 2,981,000 jobs, according to the survey of business establishments. Private sector payroll jobs grew by 1,800, while government rose by 2,100 jobs.
• Private industry sectors with significant job gains in January were: educational and health services (≈2,500), professional and business services (≈1,100) and manufacturing (≈1,100). Significant over the month private sector job loss occurred in construction (≈2,400) and leisure and hospitality (≈1,000).
• Since January 2024, nonfarm payroll jobs have increased 22,600, with the private sector growing by 7,600 and government adding 15,000 jobs. The largest private sector job gains were in educational and health services (≈5,900), trade, transportation, and utilities (≈4,400), leisure and hospitality (≈3,400), and manufacturing (≈1,400). During that same period professional and business services (≈4,000), information (≈3,200), and financial activities (≈2,000) payroll jobs declined. Colorado’s rate of job growth over the past year is 0.8 percent, behind the U.S. rate of 1.3 percent.
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls declined from 32.7 to 32.6 hours, while average hourly earnings grew from $37.42 to $39.80, three dollars and ninety-three cents more than the national average hourly earnings of $35.87.

Annual averages and benchmark revisions to 2023 data

• The annual unemployment rate for Colorado was 4.3 percent in 2024, revised up from the previously published 3.9 percent. The U.S. unemployment rate in 2024 was 4.0 percent.
• Colorado nonfarm payroll employment increased at an annual rateof 1.1 percent in 2024, or 33,200 jobs. The U.S. annual payroll jobs growth rate in 2024 was 1.3 percent.

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