PRESS RELEASE

Colorado Department of Labor and Employment • 633 17^th Street, Suite 600 • Denver, CO 80202 • (303) 318-8850 • Fax: (303) 318-8870

For Immediate Release

Date: March 11, 2008/ 9:00 A.M.

Contact: Office of Government and Public Relations

Phone: (303) 318-8004

Fax: (303) 318-8070

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

COLORADO LABOR FORCE DEVELOPMENTS

FOR JANUARY 2008

Labor Force[i]

DENVER – Colorado’s labor market weakened slightly in January as the State’s seasonally adjusted unemployment rate rose two-tenths of a percentage point to 4.2 percent, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. “Colorado continues to display modest employment gains in the face of a national economy seemingly on the verge of contraction,” noted Mares. Last January the unemployment rate stood at 3.9 percent.

The State’s major labor market indicators were mostly positive in 2007. Revised labor force estimates put Colorado’s 2007 annual average jobless rate at 3.8 percent, down from the previous year’s average of 4.3 percent and the lowest since 2.7 percent was recorded in 2000. Total employment expanded 65,700 last year while the average number of unemployed residents fell 11,600. First-time claims for unemployment insurance inched up about 2 percent in 2007 after falling 11 percent the previous year.

The sharp increases in unemployment originally reported toward the end of last year were largely erased with the completion of the annual labor force revisions. After revision, adjusted unemployment rates stayed essentially flat the final four months of the year. During 2007 jobless rates ranged between 3.6 and 4.0 percent.

After adjusting for normal seasonal labor force movements, the estimated number of employed Coloradans rose 14,500 in January. With this gain, total employment is now 74,000 higher than a year ago. The number of unemployed increased 7,100 during the month to 116,100. One year ago unemployment stood at 104,400.

Wage and Salary Employment[ii]

The number of wage and salary jobs increased 51,100 or 2.2 percent in 2007. This is the fourth consecutive year of employment growth although the advance was marginally lower than that of 2006. Annual nonfarm job gains, which ranged from 3.4 to 5.1 percent between 1992 and 2000, have not exceeded 2.4 percent in the past seven years.

Results from the monthly survey of Colorado business establishments showed that the estimated number of nonfarm jobs declined 55,500 to 2,311,900 in January. Nine of the State’s eleven major industry sectors lost jobs while two were little changed. However, the decrease was typical for the month and primarily attributable to seasonal losses in education, trade, and construction. Trade, transportation, and utilities posted the largest decline, falling 14,100, due mostly to post-holiday layoffs in retail trade. Government payrolls fell by 13,400, with losses concentrated in its educational components. Professional and business services pared 10,000 jobs and construction trended down a normal 7,700 positions. Leisure and hospitality employment fell 2,500, while financial activities and education and health services shed 2,300 and 2,200 workers, respectively. Both information and manufacturing saw payroll declines of 1,600.

The estimated number of nonfarm jobs was up 49,300 or 2.2 percent since last January. This gain was primarily concentrated in five industries. Government enjoyed the most growth with 10,800 new employees. Leisure and hospitality added 9,600 positions and professional and business services gained 9,500. Education and health services, along with trade, transportation and utilities rounded out the top five with payroll increases of 9,200 and 8,800, respectively. Natural resources and mining enjoyed the fastest growth of all industries at 13.9 percent and added 3,200 positions. Other services employment rose 1,700, while construction and information payrolls were little changed over the year.

Employment in financial activities has declined substantially as fallout from the housing slowdown and credit market turmoil continues to take its toll on the industry. The sector has fallen 2,500 over the past twelve months. Manufacturing has also continued to trend down over the year, slipping 1,500.

National[iii]

The Bureau of Labor Statistics reported that the nation’s unemployment rate remained essentially unchanged at 4.9 percent in January. Nonfarm payroll employment showed its first decline in fifty-two months, edging down a revised 22,000 in January. In 2007, payroll employment increased by an average of 91,000 jobs per month compared to an average monthly gain of 175,000 in 2006. In January, employment in manufacturing and construction continued to trend downward, falling 31,000 and 25,000, respectively. Health care gained 27,000 and retail trade was unchanged.