Colorado Labor Market Update - MAY 2026

Summary:

Colorado experienced a slight net employment decline in May. The state lost a total of 400 nonfarm jobs: public-sector employment fell by 400 while private-sector employment remained level. Among private industries, large declines impacted the financial activities and manufacturing sectors, which lost 2,000 and 1,200 jobs, respectively. Colorado’s labor force participation rate decreased while its unemployment rate held steady at 3.9%.

Key Findings:

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• Over the past year, Colorado has experienced relatively slow job growth. The state ranks 31st among states in nonfarm employment growth over this time.
• Colorado lost 400 jobs in May, with all declines occurring in the public sector. Government employment fell by 400 jobs, while private-sector employment remained flat.
•  Colorado’s LFPR dropped for the fifth consecutive month. The state's LFPR declined 0.2 percentage points in May and has now fallen 1.4 ppt in the last year.
•  Only 3 of Colorado’s 11 jobs sectors grew over the last year. Construction, education & health services, and leisure and hospitality sectors grew while all other sectors saw employment declines.

Click the button below to open the full labor market report and see sector breakdowns, wages, and more.