A new report for the first quarter of 2023 indicates the labor market is slowing down in Colorado, while more people are filing to form businesses.
According to the Quarterly Business & Economic Indicators report released May 4, prepared by the University of Colorado Leeds Business Research Division with the Colorado Secretary of State’s Office, in March 2023, the state’s employment increased by 33,400 (1.2%) — the second slowest nationally year-over-year.
The areas with the largest annual increases included mining and logging; leisure and hospitality; and professional and business services. The areas with the biggest losses were in financial activities; information; trade, transportation and utilities; and construction.
The report indicated the U.S. unemployment rate was 3.5% in March 2023, which is down from 3.6% a year ago. Colorado’s unemployment decreased from 2.9% in February to 2.8% in March.
“The labor market, while still strong, is signaling a slowdown ahead,” said Rich Wobbekind, senior economist and BRD faculty director, in a press release. “Data from the Bureau of Labor Statistics for March 2023 showed employment growth in the nation decelerated from January to February, adding 236,000 jobs—the lowest number of jobs added in two years.”
Colorado’s labor force participation also remained strong, according to the report, ranking fourth highest in the country in March at 68.5%. The state’s per capita personal income of $75,206 is also ranked eighth.
New entity filings increased 27.6% year-over-year, according to the report, and 14.3% quarter-over-quarter. Nearly 56,000 new entities were filed in the first quarter of 2023, a record, with many of them being limited liability companies. The report indicated a fee credit that reduced LLC filing fees to $1 likely led to the increase.
Existing entity renewals increased 1.2% in the first quarter year-over-year and 13.3% quarter-over-quarter. The number of dissolutions also hit a record high of almost 14,000 in quarter one, up 5.3% from the prior quarter, as dissolution filings increased 9.1% year-over-year, which was a decrease in the annual pace from the previous quarter of 17%.
To find out more about Colorado’s key economic stats and trends impacting it, visit the Colorado Business and Economic Indicators Dashboard.