Colorado Jobs and Labor Force Update – February 2025 Update

Colorado lost 8,900 total non-farm jobs in the month of February following the Bureau of Labor Statistics (BLS) revisions. The state’s private sector declined by 10,300 jobs while government employment increased by 1,400. Over the past year, employment in Colorado’s private sector has decreased by 14,700 while public employment has grown by 15,200. 

The state’s unemployment rate held steady at 4.7% in February after increasing the month prior yet remained elevated above the national unemployment rate, which increased by .1% in February to 4.1%. Colorado’s unemployment rate has typically remained below the national average. 

Colorado’s trade, transportation, and utilities sector lost 11,000 jobs in February, by far its worst month since Covid layoffs as the industry grapples with uncertainty in regional and global trading. 

The state’s construction industry grew by 700 jobs last month but remains 1,900 jobs below its employment level in February of 2024. Manufacturing employment declined by 200 jobs in February while the state’s leisure and hospitality sector added 400 jobs.

Key Findings—Colorado February 2025 Employment Data 

• Over the past year, employment in Colorado’s private sector has decreased by 14,700 while public employment has grown by 15,200. 
•  Colorado lost 8,900 total nonfarm jobs in the month of February. The state’s private sector fell by 10,300 jobs while government employment increased by 1,400.
• Colorado’s unemployment rate remained at 4.7% in February. This is above the national rate of 4.1% and the highest unemployment rate in Colorado since September of 2021.
• Colorado’s trade, transportation, and utilities sector lost 11,000 jobs in February. 

According to the BLS survey of establishments (CES), Colorado’s employment-to-population ratio has not exceeded its pre-pandemic level since December 2024.

According to the BLS survey of households (LAUS), which captures both traditional jobs and self-employment, Colorado has never recovered to its pre-pandemic employment-to-population ratio.

A Deeper Dive into Colorado Industries (BLS CES Survey)

Employers lost a net total of 8,900 jobs in February. Private employment fell by 10,300 while public employment increased by 1,400. This continues a trend that has seen public employment grow by 15,200 jobs since last February while private employment fell by 14,700 over the same period.  

• The trade, transportation, and utilities sector lost 11,000 jobs last month. 
•  Colorado’s professional and business services sector declined by 800 jobs and is down 9,100 jobs over the last 12 months.
• Employment in Colorado’s education and health services sector grew by 1,100 jobs in February.
• The state’s mining and logging sector added 100 jobs in February 

The pandemic caused a major shock to the composition of Colorado’s job market in early 2020 and may have induced some structural changes in the long run.

• The state’s professional and business services sector has grown by 4.8% since the start of 2020.
•  Since January 2020, employment in the mining and logging sector has fallen by 22.4%. This is likely the result of a combination of global trends and state policy.

Colorado Labor Force Update

Colorado’s LFPR (labor force participation rate) declined by 0.1% to 67.9% in February. Outside of December 2024, the last time Colorado’s LFPR hit 67.9% was December of 2022.