Colorado’s private sector went missing in action in April causing job gains to stall

The UCHealth University of Colorado Hospital in Aurora on Friday, March 24, 2023. The University of Colorado Anschutz Medical Campus has seen a 100% increase in car thefts on their parking lots during 2022 in comparison to 2021. (Photo by Rebecca Slezak/Special to The Denver Post)

Colorado employers added a meager 300 jobs in April, with the private sector losing 600 jobs and governments adding 900 jobs, according to a monthly update from the Colorado Department of Labor and Employment.

March’s strong monthly gain, initially estimated at 5,300 jobs, was revised down to 2,800 jobs. The state’s seasonally adjusted unemployment remained at 3.7%, below the U.S. rate of 3.9%.

“Colorado employment started the year on a strong note, but employment growth tapered off in March and April,” said Broomfield economist Gary Horvath. “The bottom line is that there is not broad-based growth. While government employment is important, resilient economic growth requires increased employment in the private sector.”

Education and health services added 4,600 jobs between March and April, more than any other supersector. Other services added 1,200 jobs. The biggest decline, 3,100 jobs, came in professional and business services, followed by construction, which shed 1,700 jobs.

Over the past year, the private sector has added 27,200 jobs while governments have added 24,600. The largest annual private sector gains came in educational and health services, up 19,400 jobs; leisure and hospitality, up 7,600 jobs and professional and business services, up 5,800 jobs.

The biggest annual declines came in trade, transportation and utilities, down 6,000; construction, down 4,300, and information, down 2,500 jobs.

“The disappointing performance is not surprising given the uncertainty caused by persistent inflation and high interest rates. The higher and longer mindset has caused some business leaders and consumers to be cautious,” said Horvath.

The state’s job growth rate of 1.8% the past year matches the U.S. rate, but historically Colorado has ranked as a top 10 state for job growth. The share of Colorado’s adult population participating in the labor force was unchanged at 68%.