For Immediate Release

 

Date:                August 21, 2009/ 9:00 A.M.

Contact:            Office of Government, Policy and Public Relations

Phone:             (303) 318-8004

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

 

 

COLORADO LABOR FORCE DEVELOPMENTS

JULY 2009

 

 

Labor Force^[i]

 

(DENVER) – Colorado’s seasonally adjusted unemployment rate was little changed in July, edging upward two-tenths of one percentage point to 7.8 percent, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. “Months without a significant increase in unemployment and a slight improvement in over the year wage and salary losses may be an indication the economy is stabilizing,” Mares said. The current jobless rate is 2.9 percentage points higher than last July’s level of 4.9 percent.

 

After adjusting for normal labor force movements, the number of working Coloradans declined 14,500 over the month to 2,481,300. Household employment is now off 115,900 from last July’s level of 2,597,200. The number of residents unsuccessfully looking for work increased 5,100 in July to 209,300. The number of unemployed persons is nearly 76,000 higher than one year ago. First-time claims for unemployment are up 210 percent through July 2009 compared with the same period last year.

 

Nearly all of Colorado’s labor market areas saw modest improvements in midsummer. Seasonally unadjusted jobless rates fell in 52 counties, rose in 7, and remained unchanged in 5. Dolores County posted the highest rate at 13.9 and Hinsdale County, at 2.7 percent, enjoyed the lowest rate.

 

Wage and Salary Employment^[ii]

 

Results from the monthly survey of Colorado businesses showed nonfarm wage and salary employment fell by 10,900 to 2,263,600. This decrease was considerably smaller than normal for July. Employment declined in three major industry groups, increased in six, and showed little change in two.

 

Typical July cutbacks occurred in education-related industries, with seasonal declines leading to an 18,000 drop in government and a 1,600 decrease in education and health services. Payrolls in information edged down 200, while mining and logging along with manufacturing were essentially unchanged.

 

Construction led all gainers with the addition of 3,000, marking this industry’s largest gain in more than one year. Professional and business services enjoyed a seasonal uptick of 2,500. Enactment of new laws allowing twenty-four hour gaming contributed to the 2,300 gain in leisure and hospitality. Employment in financial activities and trade, transportation and utilities inched up 400 apiece, while other services notched up 300.

 

In the past twelve months, statewide payrolls have contracted by 100,000 or 4.2 percent. This represents a slight improvement over June and marks the first time since April 2008 that the twelve-month rate of change did not worsen from the previous month. Education and health services, with employment growth of 8,300, and government, with a 6,700 advance, remain the only two sectors to have added jobs over the year.

 

Professional and business services shed 27,100 positions, with about one-third of losses occurring in employment services. Construction continues to suffer in the wake of the housing downturn—industry payrolls are 22,800 below last July’s level. Trade, transportation and utilities is off 16,100; manufacturing employment is down 15,000; and leisure and hospitality fell 14,100 from this time last year. Woes in credit intermediation and real estate have led to the loss of 8,700 in financial activities. Information pared 4,600 positions over the year, while mining and logging and other services shed 3,700 and 2,900, respectively.

 

National^[iii]

 

The Bureau of Labor Statistics reported that the nation’s unemployment rate was little changed in July at 9.4 percent. Nonfarm payroll employment continued to shrink, falling 247,000 during the month. The rate of job losses has improved over the past three months, averaging 331,000 per month, compared with losses averaging 645,000 from November 2008 to April 2009. Over the month, employment continued to decrease in manufacturing, construction, professional and business services, retail trade, and financial activities. Health care employment increased by 20,000.