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, 2009/ 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 2009

Labor Force[i]

DENVER – Colorado’s labor market slumped significantly at the beginning of the year, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. At 6.6 percent, the State’s January seasonally adjusted unemployment rate rose eight-tenths of a percentage point from the revised December rate of 5.8 percent. “Despite the increase, Colorado’s jobless rate continues to be considerably lower than that of the nation,” noted Mares. The current rate is much higher than last year at this time when it stood at 4.3 percent.

Recently revised labor force and employment data reveal that the State’s major labor market indicators softened in 2008. Although the number of nonfarm payrolls advanced for the fifth consecutive year, the increase of 18,000 or 0.8 percent was only about one-third the gain of the previous year. At 4.9 percent, the annual average jobless rate for 2008 rose a full percentage point from the 3.9 percent seen in 2007. First-time claims for unemployment insurance jumped 38 percent in 2008 after registering only a small increase the previous year.

After adjusting for normal seasonal labor force movements in January, the estimated total of working Coloradans declined 35,200 over the month. Total employment has now fallen 41,400 over the year. The number of residents unsuccessfully looking for work increased 21,100 during the month to a record 181,000. A year ago unemployment stood at 118,100.

Slowing labor market conditions were recorded throughout most Colorado areas during the month as sixty-two counties saw higher unemployment rates. Yuma County posted the lowest jobless rate at 3.2 percent; the highest rate was registered in Dolores County at 12.3 percent.

Wage and Salary Employment[ii]

Results from the monthly survey of Colorado business establishments showed that the estimated number of nonfarm jobs declined 64,100 to 2,272,600 in January. Heavy employment losses are typical this time of year in several industries, including education, trade, and construction. This month’s overall decline, however, was larger than normal with weakness especially apparent in construction and professional and business services. Trade, transportation, and utilities employment fell 14,500 due to seasonal losses within retail trade. Professional and business services cut 14,400 workers, with the decline concentrated in its administrative and support sector. Government payrolls contracted 12,600 with most of the loss attributable to its seasonal educational components. Construction employment fell 10,400 and leisure and hospitality trended down 4,300. Losses in both sectors exceeded seasonal expectations. Smaller declines were seen in the remaining industries, with the exception of other services and natural resources and mining which were unchanged.

The estimated number of nonfarm jobs has fallen 42,000 or 1.8 percent since last January. Seven industries experienced employment losses over the past twelve months while four recorded gains. Losses have been greatest in professional and business services, down 19,100; construction, off 16,700; and trade, transportation and utilities, down 11,900. Manufacturing has declined 8,000 while financial activities is off 6,500. Smaller losses have occurred in both leisure and hospitality and information. Growth was greatest in government, up 10,400, with the majority of new hiring concentrated within the state and local subsectors. Education and health services saw an increase of 8,600. Natural resources and mining, up 3,100 over the year, remains the fastest growing industry. Other services employment rose 1,500.

National[iii]

The Bureau of Labor Statistics reported that the nation’s unemployment rate rose four-tenths of one percentage point to 7.6 percent in January. Nonfarm payroll employment fell by 655,000 in January and has declined by 3.7 million since the recession began in December 2007; more than one-half of this decrease has occurred over the past three months. In January, employment losses were large and widespread across nearly all employment sectors. Manufacturing pared 257,000 jobs; professional and business services shed 134,000; and construction trended down 118,000. Government gained 31,000 jobs, while educational services and health care each added 20,000 positions.