Colorado unemployment rates soar a mile high

For several years leading up to the COVID-19 crisis, Colorado ranked among the states with the nation’s lowest unemployment rates. In February, the state rate was approximately two percentage points below the national average. During the early weeks of the pandemic, however, Colorado’s unemployment rates took flight, rising 2.5 percentage points in March alone, according to the Colorado Department of Labor and Employment (CDLE). As a result of the sharp incline (to its highest point since August 2014), the state is now slightly above the national average, which is the first time that has happened since June 2005.

March increase in unemployment filings considered tip of the iceberg

In a recent press release, the CDLE cautioned the March statistics are merely an “initial estimate of Colorado’s employment situation during the first stages of the COVID-19 outbreak.” In terms of actual numbers of individuals affected, the CDLE reported the number actively participating in Colorado’s labor force decreased by 45,600, and the number reporting themselves as employed decreased by 107,900. That resulted in 62,300 more unemployed individuals since February 2020. Notably, the national unemployment rate increased just nine-tenths of a percentage point during the same month.

The sharpest decline in employment rates during March occurred in the sectors of education, health services, leisure and hospitality, manufacturing, trade, transportation, utilities, and other services. By contrast, the state experienced slight gains in the professional and business services sectors.