Colorado Labor Market Update - February 2026

Summary

Colorado lost 7,200 nonfarm jobs in February, all in the private sector. After moderate growth in January, February’s initial figures demonstrate a sharp decline in employment contrary to the national trend. While the state’s private sector shrank by 0.2% in February, private employment rose by 0.2% across the country. Losses were concentrated in service-oriented industries, but steady growth in the construction sector suggests that investment may not be flagging in response.

Key Findings

• Colorado’s job growth rate ranks poorly over the last year. Colorado’s -0.3% nonfarm growth rate ranks 37th among all states over the last 12 months.
• Colorado experienced a sharp job decline in February. While job growth was strong in January, the labor market weakened in February, with Colorado losing 7,200 jobs.
• Year-over-year, Colorado’s job growth fell while the rest of the country’s rose. Over the last 12 months, Colorado’s private and nonfarm growth rates were -0.2% and -0.3%, respectively, while the national average was 0.0% and +0.2%.
• Only 3 of Colorado’s 11 jobs sectors grew over the last year. Construction, education & health services, and trade, transportation & utilities grew while all other sectors saw employment declines.

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