Colorado unemployment rate jumps to 8.4% in December after period of Level Red restrictions

DENVER — Colorado’s statewide unemployment rate rose 2 percentage points to hit 8.4% in December, state officials said, marking the first time since June that the rate has increased since the initial high from the spring stay-at-home orders.

In new data released by the Colorado Department of Labor and Employment Friday, 24,400 fewer residents were employed in December compared to the month prior. At the same time, 42,200 people joined the labor force to mark 3,212,600 state residents who are either working or actively seeking work.

The state lost 20,600 jobs from the private sector, while government jobs rose by 300. The overall job recovery rate from March highs now stands at 55.9%.

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Several of the new job losses were likely caused when several of the state’s most populous counties were moved to Level Red restrictions after the fall brought on soaring COVID positivity and hospitalization rates.

The data is gathered in a mid-month survey, which would not include Coloradans who were rehired or brought off furlough after Gov. Jared Polis ordered counties that were at Level Red to move to Level Orange restrictions at the end of December.

CDLE senior economist Ryan Gedney said an estimated 44% of people who stopped working last month were placed on temporary furloughs, while 37% were estimated to be permanently laid off.

He said while the majority of losses during the period were in leisure and hospitality, the state saw 7,100 retail jobs added in December. The health care and social assistance sector and administrative support sector grew by 3,500 and 3,400 jobs, respectively.

While Colorado’s rate is now higher than the most recent U.S. rate of 6.7%, Gedney said differences in how each state is approaching controlling the spread of the virus makes that an uneven comparison.

“It’s difficult to tell without really digging into each state’s regulations and how they’re trying to combat COVID-19,” he said.

At the county level, Larimer County rose 2.2 percentage points to 7.4% for December, while Weld County rose 1.9 percentage points to 8.3%. Boulder County’s unemployment rate rose 1.8 percentage points during the two months to 6.9%, while Broomfield County rose 1.9 percentage points to a rate of 7.2%.

All of those county-level statistics are not adjusted for seasonality and are better compared to the unadjusted statewide unemployment rate of 8.2%.

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