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FOURTH QUARTER 1998 IN REVIEW
ALL INDUSTRIES

Employment change from last quarter+ 0.5
Employment change from year ago+ 3.7
Wage change from year ago+12.1

Although this time period has been characterized by low inflation, low interest rates, an expanding stock market and increased personal income quarterly employment is slightly slow. Employment rose by 9725 or 0.5% since last quarter, reflecting one of the slowest fourth quarters on record. Since 1992 every fourth quarter has added a minimum of 12,000 workers. Sluggishness can be related in part to the Asian market crisis and its effect on Manufacturing and Wholesale employment. Manufacturing lost 1001 employees and 328 were added to Wholesale down from the typical addition of 1000. The end of the growing season caused a loss of 6876 in Agriculture, and Construction dropped by 2162 due to the weather. Government experienced the largest gain adding 11,767 as most schools were back in operation following summer break. Retail employment rose by 4936 a seasonal occurrence relative to the Christmas holiday.
Annually, Colorado employment grew 3.7% adding 73,937 employees. Growth in the Services industry generated the largest share of the gain up 20,651 led by continued demand for computer support. In terms of percent Construction was the leader up 13.4% from the previous year and ranked second in absolute number adding 16,402. Low interest and mortgage rates and an increasing populace continues to strongly impact this industry. Retail Trade reported the third largest increase, up 12,552, driven by new restaurants and grocery stores. Annual losses were reported in the Manufacturing and Mining industries. Manufacturing suffered its first annual loss since 1995 dropping by 1284 due to closures in the food production and plastics industries and layoffs in electrical machinery. Mining down 435 suffered from corporate cutbacks, low commodity prices and decreased drilling activity.

% EMPLOYMENT CHANGE
 QUARTERLYANNUAL
AGRICULTURE-19.5+ 7.6
MINING- 3.1- 2.8
CONSTRUCTION- 1.5+13.4
MANUFACTURING- 0.5- 0.6
TCPU+ 2.4+ 6.4
WHOLESALE+ 0.3+ 1.3
RETAIL+ 1.3+ 3.3
FIRE+ 0.6+ 6.6
SERVICES- 0.1+ 3.6
GOVERNMENT+ 3.9+ 2.2

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Colorado Employment and Wages (ES202) Fourth Quarter 1998