For Immediate Release

 

Date:                        March 27, 2009/ 9:00 A.M.

Contact:                   Office of Government, Policy and Public Relations

Phone:                     (303) 318-8004

Fax:                         (303) 318-8070

 Web:                       http://lmigateway.coworkforce.com/lmigateway/

 

 

COLORADO LABOR FORCE DEVELOPMENTS

FOR FEBRUARY 2009

 

Labor Force^[i]

 

DENVER – The State’s seasonally adjusted unemployment rate rose six-tenths of one percentage point to 7.2 percent in February, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment.  “Like most states, Colorado’s economy continues to be impacted by tepid growth in business investment and lackluster consumer spending,” noted Mares.  The jobless rate, which has increased 1.8 percentage points over the last three months, is the highest since 7.3 percent was recorded February 1988.  A year ago the rate was 4.5 percent. 

 

After adjusting for normal seasonal labor force movements, the number of employed Colorado residents fell 21,500 over the month to 2,534,900.  Total employment has declined 62,900 since last February.  The count of residents unsuccessfully seeking work rose 13,700 during the month to 195,800 and is up 72,300 from one year ago.  

 

Labor market conditions remained sluggish in most areas with fifty-one counties posting higher jobless rates over the month.  Yuma County enjoyed the lowest unemployment rate at 3.4 percent while the highest rate, 13.8 percent, was registered in Dolores County.

 

Wage and Salary Employment^[ii]

 

Total nonfarm wage and salary employment in the State fell 4,400 in February, according to the monthly survey of Colorado businesses.  This marks the first February loss in twenty-three years and is the largest decline this month since 1975.  Eight of the eleven major industries pared jobs, led by the loss of 8,100 in trade, transportation and utilities as retailers and wholesalers trimmed their remaining seasonal holiday help.  Payrolls in professional and business services fell 5,300, with more than ninety percent of these positions coming from the highly seasonal administrative and support sector.  Financial activities shed 2,200 employees, while construction and manufacturing employment fell by 1,800 and 1,600, respectively.  Natural resources and mining experienced its third consecutive month of job losses, something that has not occurred since the end of 2002.

 

Seasonal gains in its educational components accounted for the bulk of the 11,800 increase in government.  Education and health services, up 2,400, continued to display relative strength during the month, with about half of the sector’s gains centered in private education. Leisure and hospitality added 2,000 jobs, most of them in accommodation and food services.

 

The estimated number of wage and salary workers has shrunk 61,200 or 2.6 percent over the last twelve months.  Professional and business services, a main contributor to job growth over the past five years, is now the largest drag on employment.  This sector has shed 27,200 positions since last February, an annual decline of 7.8 percent.  Construction, down 18,400 or 11.8 percent, has experienced the largest percentage decline of all industries.  Trade, transportation and utilities employment has fallen 15,700.  Within this sector, only utilities and food and beverage stores have more employees than one year ago.  Manufacturing, down 9,500, and financial activities, off 9,100, have also seen significant losses over the past year. 

 

Hiring continues to be concentrated within education, health care, and natural resources.  Government is up 12,800 over the past year with the majority of the jobs coming in the state and local education subcategories.  Education and healthcare has expanded 7,400 over the past twelve months.  Although gains have slowed since last February, natural resources and mining is still up 2,300 jobs.

 

National^[iii]

 

The Bureau of Labor Statistics reported that nonfarm payroll employment continued to fall sharply in February, down 651,000, and the unemployment rate rose from 7.6 to 8.1 percent.  Payroll employment has declined by 2.6 million in the past four months.  In February, job losses were large and widespread across nearly all major industries with the largest losses occurring in professional and business services, down 180,000, manufacturing, down 168,000, and construction, off 104,000. Health care continued to add jobs, growing by 27,000.