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Colorado adds 6,600 jobs in January as unemployment rises to 3.9%
ColoradoBiz Staff //April 8, 2026//
Deposit Photos
Deposit Photos
Colorado adds 6,600 jobs in January as unemployment rises to 3.9%
ColoradoBiz Staff //April 8, 2026//
Colorado added 6,600 nonfarm payroll jobs in January while the state’s unemployment rate rose to 3.9%, up from 3.8% in December, according to data released Wednesday by the Colorado Department of Labor and Employment.
In Brief:
- Colorado added 6,600 nonfarm payroll jobs in January
- Unemployment rate rose to 3.9% from 3.8% in December
- Private sector added 7,200 jobs; government lost 600
- Average hourly earnings rose to $40.62, above national average
The number of unemployed Coloradans increased by 1,200 to 126,300. Nationally, the unemployment rate declined to 4.3% over the same period.
Colorado’s labor force fell by 5,200 to 3,248,800 in January, and the labor force participation rate dipped to 66.8%, its lowest level since September 2020. The number of employed residents declined by 6,400 to 3,122,600, representing 64.2% of the population age 16 and older.
Payroll gains were driven by the private sector, which added 7,200 jobs, while government employment declined by 600 positions.
Sectors posting the largest job increases in January included educational and health services, professional and business services, trade, transportation and utilities, construction and other services. Losses were concentrated in leisure and hospitality, manufacturing, information, and financial activities.
Over the past year, Colorado lost 11,000 nonfarm payroll jobs, including declines of 7,000 in the private sector and 4,000 in government. The state’s job growth rate was -0.4%, below the national rate of 0.2%.
Average hourly earnings for private sector employees rose to $40.62, up from $39.79 a year earlier, exceeding the national average of $37.17. The average workweek edged down to 32.6 hours.
Revised data show Colorado’s annual unemployment rate for 2025 was 4.0%, down from a previously reported 4.5%, while nonfarm payroll employment declined by 11,700 jobs for the year.
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