Colorado loses 323,500 jobs in April, unemployment at record high

Colorado’s unemployment hit a historic high at 11.3% in April as the state lost 323,500 jobs, according to statistics released Friday by the Colorado Department of Labor and Employment.

That unemployment figure, which sat at 2.9% to start the year, is the highest recorded since comparable records began in 1976, the department reported. 

“The number of people actively participating in the labor force in April decreased 67,400 over the month to 3,069,200, and the number of people reporting themselves as employed decreased 251,200 to 2,721,300,” CDLE said. 

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The previous high water mark for unemployment was 8.9% in 2010.

“We’ve been saying for the past nine weeks that the April jobs number would be the most telling indicator of the COVID-19 impact on our state’s economy,” CDLE spokeswoman Cher Haavind said. Colorado “went from a record low to a record high in unemployment in a matter of months. That’s quite frankly unbelievable.”

The leisure and hospitality industry took the biggest hit, losing 148,100 jobs. Other particularly vulnerable sectors included trade, transportation,  utilities, professional and business services, construction and manufacturing. 

Nationally, the unemployment rate was 14.7% in April, the highest since comparable records began in 1948. Colorado had the 15th lowest unemployment rate in the country.

In the Boulder Valley and Northern Colorado regions, Boulder County recorded the lowest April unemployment rate of 9.7%. Weld County posted a 9.8% rate, Broomfield County 10.9% and Larimer County 11%.

In addition to those unemployed, an additional roughly 10% of workers are underemployed, meaning they’re working part time but would prefer full-time work. 

Despite the rise in unemployment, there’s also been a rise in wages. Over the year, hourly earnings increased from $30.35 to $31.98.

That’s not necessarily good news, however, Gedney said. The reason why average wages are up is likely attributable to the fact that the COVID-19 outbreak has disproportionately eliminated low-wage jobs, especially in the hospitality industry.

For state economists, the light at the end of the tunnel remains elusive.

“There are a lot of questions out there on what business labor demand will be as it returns to being operational,” said Alexandra Hall, who served as the state’s chief economist during the Great Recession.

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