Colorado Labor Market Update - January 2026

Summary

Colorado added 6,600 nonfarm jobs in January; government employment fell by 600 while private job growth was 7,200. While Colorado’s most recent month showed strong job growth, the state has seen total employment decline by 11,000, or 0.4%, over the past year. Conversely, states on average grew their nonfarm employment by 0.2% during that same period. Job openings, hires, and separations are all below their 12-month averages, suggesting stable but low growth expectations.

Key Findings

• Colorado’s job growth rate ranks poorly over the last year. Colorado’s -0.4% nonfarm growth rate ranks 39th among all states over the last 12 months.
• Job growth was strong in January. Colorado added 6,600 total nonfarm jobs, fueled by the education and health services and construction sector.
•  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 -0.3% and -0.4%, respectively, while the national average was +0.4% and +0.2%.
•  Only 3 of Colorado’s 11 jobs sectors grew over the last year. Construction, education & health services, and other services grew while all other sectors saw employment declines.

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