Colorado’s unemployment rate edged lower to 6.1% in July, but only because nearly 3,000 people left the job market and as a result were not counted as unemployed, the U.S. Bureau of Labor Statistics reported Friday.

The July jobless rate, which had been 6.2% in June, was the lowest since the COVID-19 pandemic triggered a statewide stay-at-home order in March 2020 that idled more than 375,000 workers, many in the hotel and restaurant industries. But the state’s unemployment rate is still more than double the 2.8% rate in February 2020, and the number of people employed remains about 72,000 below the December 2019 peak of 3.07 million.

Colorado outpacing the U.S. in pandemic job recovery, ends historic run

The slight decline in July, based on a survey of households conducted in the middle of last month, comes as employers report they can’t hire enough workers to fill openings. Many blame an extra $300 a week in unemployment benefits as well as an extension in traditional jobless benefits, which expire Sept. 4. Nearly 90,000 will lose either the extended benefits or unemployment assistance for self-employed persons and contract workers, while 116,390 will stop receiving the extra $300 a week in benefits, according to data from the Colorado Department of Labor and Employment for the week ending Aug. 14.

Unemployment rates in Colorado’s seven metro areas, except Pueblo, fell sharply in July from June with Colorado Springs declining from 6.5% to 6.2% and Denver decreasing from 6.3% to 6%.

Boulder had the biggest drop from 5.5% to 4.9%, the lowest rate among the metro areas. Pueblo remained unchanged at 8.6%. Unlike the state rate, the metro area jobless rates are not adjusted for seasonal changes.

Colorado’s unemployment rate unchanged at 6.2%

A separate survey of employers showed Colorado added nearly 15,000 payroll jobs in July with government adding the most jobs, 6,300, followed by professional and business services, 5,000, and leisure and hospitality, 4,300. The construction industry and the trade, transportation and utilities sector shed a combined 3,200 jobs last month. The bureau also revised June’s payroll gains lower by 800 jobs to 10,000.

Ryan Gedney, the state labor agency’s senior economist, said Friday during an online news conference that he believes the unemployment rate is overstated because the household survey is missing people who have jobs. He cites the employer survey, which is seven times larger than the household survey and reflects much stronger job growth. He repeated a comment he made last month that Colorado’s unemployment rate is higher than the national rate of 5.4% because a larger percentage of workers in Colorado have returned to the job market than the rest of the nation.

Colorado unemployment rate falls to lowest level since March 2020

Initial unemployment claims from payroll workers declined in the week ending Aug. 14 to just 3,255, the fewest since the pandemic triggered widespread business closings and layoffs but still 934 more than the week before claims spiked in late March 2020, according to the department’s weekly data.

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