Colorado’s unemployment rate fell for a fifth consecutive month in September, dropping to its lowest rate since the COVID-19 pandemic took hold in March.

The state has regained two-thirds of the private-sector jobs lost in the early months of the pandemic. The jobless rate fell to 6.4% last month from 6.7% in August and is now the lowest since the rate was 5.2% in March. But the September unemployment rate is still more than double the record low 2.5% rate reached for five consecutive months between October and February. The state’s jobless rate peaked at a record high of 12.2% in April during a statewide stay-at-home order.

Colorado Springs unemployment rate falls again in August

The unemployment rate fell in September because nearly 4,000 more people were called back to work or found new jobs than reentered the job market. However, more than 200,000 Colorado residents remain without work, nearly evenly split between those who were laid off temporarily or are on furlough and those who permanently lost their jobs. Another 200,000 are working part time only because they can’t find full-time positions.

Jobless rates fell in all seven Colorado metro areas with Colorado Springs falling to 5.9% in September from 6.2% in August and Denver falling from 7% to 6.5% during the same period. Fort Collins had the state’s lowest jobless rate among metro areas at 5.2%, while Pueblo had the highest at 7.5%. Huerfano County, which includes Walsenburg, had the state’s highest unemployment rate among counties at 8.3%, while Baca County in the state’s southeastern corner had the lowest rate at 1.8%.

Colorado unemployment rate falls for second consecutive month in August

Still, Colorado’s job market is in much better shape than the rest of the nation as it has recovered two-thirds of the 332,200 private-sector jobs lost in March and April, well ahead of the nationwide average of 54%. By that measure, Colorado has recovered eighth fastest of all states with manufacturing and business and professional services leading the way — manufacturing employed 1,600 more people in September than it did in February, while business and professional services is down just 3,300 jobs during the same period. Those numbers come from a survey of businesses, while the unemployment rate comes from a survey of households.

Grand Junction and Colorado Springs lead the state’s metro areas in recovering jobs lost during the pandemic — Grand Junction has added 1,600 private-sector jobs from its pre-pandemic peak, while Colorado Springs has recovered 93.5% of the 32,400 jobs lost in March and April. Denver has recovered 73.6% of the 172,800 jobs lost in March and April, while Greeley has the lowest percentage of private-sector jobs recovered at 56.1%.

Colorado unemployment rate falls – but it’s not necessarily good news

“I’m not really surprised we are at more than 90% recovered; we are just continuing on the same trajectory since the recovery began,” said Tatiana Bailey, director of the University of Colorado at Colorado Springs Economic Forum. “Part of the reason Colorado Springs has done so well is because we have a diverse group of industries, many of which can be done from home, anchored by the defense (contracting) industry. We weren’t hit as hard as the rest of the nation and, as a result, were better poised for recovery.”