For Immediate Release

 

Date:               March 20, 2003/ 9:00 A.M.

Contact:          Office of Policy and Public Relations

Phone:             (303) 318-8004

Fax:                 (303) 318-8070

 Web:                       http://www.coworkforce.com/lmi/

 

 

COLORADO LABOR FORCE DEVELOPMENTS FOR JANUARY 2003

 

DENVER – Colorado’s seasonally adjusted jobless rate fell four-tenths of a percentage point to 5.4 percent in January, according to Jeff Wells, Executive Director of the Colorado Department of Labor and Employment.  “Although the decline in the rate is welcome, it is too early to state that the drop spells significant improvement for the Colorado labor market over the coming months,” Mr. Wells cautioned.  Last year at this time 5.7 percent of the State’s labor force were unemployed.

 

After adjusting for typical seasonal labor force patterns, the estimated number of resident jobholders advanced 21,300 in January to 2,320,400.  One year ago total employment stood at 2,285,400.  Unemployment decreased 9,300 over the month to 133,300.  Twelve months ago 137,700 Coloradans were unsuccessfully seeking work.  Results from the monthly household survey, which determine the State’s labor force and unemployment numbers, can fluctuate considerably from month to month.  Additionally, seasonal labor force movements during winter can vary due to weather and holiday related retail and tourism hiring patterns. 

 

Labor force estimates for 2000 forward have been revised to incorporate population results from the 2000 decennial census.  Revised labor force figures show that Colorado’s annual average unemployment rate in 2002 was 5.7 percent, up from the previous year’s 3.7 percent.  By comparison, the annual unemployment rate for the nation was 5.8 percent last year.

 

On an annual basis, the estimated number of nonfarm jobs in 2002 declined 41,700 or 1.9 percent.  Job growth for 2001, originally reported to be 19,000 or 0.9 percent, was revised slightly downward to 12,500 or 0.6 percent.  The wage and salary employment series has been  changed to reflect the use of the North American Industry Classification System (NAICS).  Under NAICS, the definition of industry groups has changed and the number of major industry sectors expanded from eight to eleven.

    

Nonagricultural wage and salary employment, as measured by the monthly survey of Colorado businesses, contracted 46,100 in December to 2,149,200.  The drop was about normal for the month.  Eight of the State’s main industry sectors reduced payrolls in January, two added workers, and one was unchanged.  Over the past year nonfarm employment has risen 2,000 or 0.1 percent.  This marks the first over the year gain since September 2001.

 

Most new hiring in January came in the leisure and hospitality sector, up 1,700.  Within the sector, other amusement and recreation industries, a group including the State’s ski operators, rose 1,100.  Employment in the leisure and hospitality group has risen 9,800 since January 2002, with most new jobs concentrated within the accommodation and food services group.

 

Losses were greatest in the trade, transportation and utilities division during the month.  The sector receded 15,500, due largely to post-holiday cutbacks within retail trade.  Despite the monthly decline, the group has managed a small 1,400 gain over the past twelve months.

 

Although government fell 13,000 in January, seasonal declines in the state and local education subsectors accounted for nearly the entire drop.  Government is up 16,700 over the year, with the majority of new jobs centered in local government.  

 

Professional and business services dropped 8,900 over the month.  Losses within the administrative and support services category, down 8,200, were responsible for most of the decline.  Employment services, which includes temporary help firms, fell 3,500 in January.  Overall, employment levels in the professional and business services category has shrank 14,100 since January 2002.

 

The nation’s unemployment rate declined three-tenths of a percentage point to 5.7 percent in January.  The decline reversed a similar increase the prior month as employment rose by nearly 1.1 million to 137.5 million and unemployment fell 400,000 to 8.3 million.  However, changes to the household survey make monthly comparisons before 2003 problematic.  Meanwhile, nonfarm payrolls expanded 143,000 during the month with gains reported in trade and services.  The increases were likely due to unusual seasonal factors affecting estimates within retail trade.