Colorado Jobs and Labor Force Update – June 2025 Update

During June, Colorado lost 1,500 total nonfarm jobs. The state’s private sector lost 1,600 jobs, while government employment grew by 100 jobs.

The state’s unemployment rate decreased 0.1 percentage points to 4.7% in June; this is the first decrease in three months. This unemployment rate is the highest it has been since September 2021, when it was 4.9%, and currently sits 0.6 percentage points above the national rate of 4.1%.i Historically, Colorado’s unemployment level has usually remained below the national average.

Although total government employment rose by 100 jobs in June, both federal and local government sectors saw declines of 400 and 100 jobs, respectively. In contrast, state government employment in Colorado increased by 600 jobs, marking the sector’s 11th consecutive month of growth.

Employment in the state’s construction industry decreased by 1,300 in June and has declined by a total of 5,100 jobs over the last 12 months. Colorado's leisure and hospitality sector saw the largest increase in June, adding 3,000 jobs. For the second month, the state’s trade, transportation, and utilities industry experienced the largest decline among all sectors, declining by 2,500 jobs.

Key Findings—Colorado June 2025 Employment Data 

• Colorado lost 1,500 total nonfarm jobs in the month of June. The state’s private sector declined by 1,600 jobs while government employment grew by 100.
•  Over the last 12 months, Colorado’s government employment has grown by 10,000 while private employment increased by just 600 jobs.
• Colorado’s unemployment rate decreased to 4.7% after three months of no change; it remains above the national rate of 4.1%.
• Over the past year, federal government employment in Colorado declined by 2,100 jobs, while state and local government employment grew by 8,800 and 3,300 jobs, respectively. 
• The trade, transportation, and utilities sector lost 2,500 jobs in June. Colorado's construction industry lost 1,300 jobs. The manufacturing sector lost 100 jobs.

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

Based on 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 1,500 jobs in June. Private employment fell by 1,600 while public employment grew by 100. Since last June, government employment has grown by 10,000 jobs while private employment increased by just 600 jobs. State government employment saw the most growth over the past year; its 8,800 new jobs outpaced both local and federal government employment growth during that time.

• The trade, transportation, and utilities sector lost 2,500 jobs last month.
•  Colorado’s professional and business services sector gained 1,000 jobs in June. Over the last 12 months this sector has lost 2,800 jobs.
• Employment in Colorado’s leisure and hospitality sector gained 3,000 jobs, the largest job increase among all sectors during the month of June.
• Employment in the state’s mining and logging sector has remained unchanged at 21,900 for five consecutive months.

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 manufacturing sector has seen its share of total employment fall by over 6% since the start of 2020
•  Since January 2020, employment in the mining and logging sector has fallen by 23%. This is likely the result of a combination of global trends and state policy.

Figure 2

Colorado Labor Force Update

Colorado’s LFPR (labor force participation rate) remained steady at 67.7% in June. The national LFPR for the month of June was 62.3%.