PRESS RELEASE

Colorado Department of Labor and Employment • 633 17^th Street, Suite 600 • Denver, CO 80202 • (303) 318-8852 • Fax: (303) 318-8870

For Immediate Release

Date: November 21, 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/

Please Note: Department of Labor and Employment Chief Economist Alex Hall will be available for a media Q and A between 10 – 10:30 a.m. today. Location: 633 17^th Street. Please check in with receptionist on 2^nd Floor.

COLORADO LABOR FORCE DEVELOPMENTS

FOR OCTOBER 2008

Labor Force[i]

Colorado labor market conditions weakened in October as the seasonally adjusted unemployment rate jumped one-half of a percentage point to 5.7 percent, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. “After exhibiting comparable strength during the first quarter of this year, Colorado appears to be succumbing to many of the economic pressures facing the nation and changes in the job market here mirrored those of the national economy in October,” stated Mares. The current jobless rate is the highest since 5.7 percent was last recorded in March 2004. Last October the unemployment rate stood at 3.9 percent.

After adjusting for normal seasonal labor force movements, the estimated count of working Coloradans declined 10,000 to 2,596,800. This represents a drop of 25,300 from twelve months ago when total resident employment numbered 2,622,100. The number of people unsuccessfully seeking work increased 13,200 this month to 155,800. Unemployment has risen 48,700 since last October.

Weakening labor markets were seen across the state as 54 of Colorado’s sixty-four counties posted higher unemployment rates during the month, 4 remained the same and 6 saw decreases. At 7.5 percent, Crowley County recorded the highest rate of unemployment in the State. Sedgwick County posted the lowest rate at 1.9 percent.

Wage and Salary Employment[ii]

The monthly survey of Colorado business establishments showed that nonfarm wage and salary employment declined by 13,700 in October. This marks the second largest October loss since 1990, surpassed only by the 19,100 jobs lost in October 2001. Seven of the State’s major industry sectors pared workers, three increased staffing levels and one remained unchanged. Seasonal industries experienced declines that were larger than normal with leisure and hospitality payrolls falling by 11,500; professional and business services losing 4,600; and construction retreating 2,800. Financial activities employment fell by 1,100. Trade, transportation, and utilities declined 700, while other services and manufacturing lost a combined 500 positions.

Government experienced the most robust hiring during the month, up 5,500, with increases in the local and state education subsector responsible for all of the gains. Gains in educational services accounted for half of the 1,200 new jobs in education and health services. Information payrolls rose by 800; however, none of this increase occurred in either publishing industries or telecommunications.

Since last October, nonagricultural employment has risen by 11,700 or 0.5 percent. This represents a substantial slowdown from the first quarter of this year when annual job gains exceeded 2 percent. Growth has been largest in government, up 9,000, while education and health services realized 8,700 new jobs in the past twelve months. Natural resources and mining remains the fastest growing industry in the State at 12.4 percent, but it is now the third largest contributor to annual growth with 3,200 positions. Leisure and hospitality added 2,200 net hires while other services trended up 1,700 positions. Employment in trade, transportation and utilities edged up 1,000 and information inched up 200. Construction payrolls are down 6,200 and manufacturing cut 3,400 positions over the past year. Financial activities trimmed 2,600 workers while professional and business services shed 2,100 over the past twelve months.

National[iii]

The Bureau of Labor Statistics reported that the nation’s unemployment rate rose four-tenths of one percentage point to 6.5 percent. Nonfarm payroll employment fell 240,000 in October. Over the month, employment declines continued in manufacturing, construction, and several service-providing industries, while health care and mining again added jobs. September’s loss was revised down to 284,000; 1.2 million jobs have been lost in the first 10 months of 2008, with more than half of these losses occurring in the past three months.