Colorado’s July unemployment rate falls to 4.5%

DENVER (Aug. 19, 2025) — Colorado’s unemployment rate fell slightly in July as the state added jobs and saw a modest increase in employment, according to the Colorado Department of Labor and Employment.

The seasonally adjusted unemployment rate dropped to 4.5 percent from 4.7 percent in June. The number of unemployed residents decreased by 7,200 to 148,100. Nationally, the unemployment rate ticked up one-tenth of a percentage point to 4.2 percent.

Colorado’s labor force declined by 2,700 to 3,280,300, with participation edging down to 67.6 percent. The U.S. labor force participation rate also slipped by one-tenth of a percentage point to 62.2 percent.

The number of Coloradans with jobs rose by 4,500 in July to 3,132,200, representing 64.5 percent of the state’s population age 16 and older. That ratio was unchanged from June. The national employment-population ratio fell slightly to 59.6 percent.

Employers in Colorado added 3,700 nonfarm payroll jobs from June to July, bringing the statewide total to 2,987,100. Private sector jobs increased by 2,900, while government positions grew by 800.

Revised June figures showed a loss of 2,700 jobs, deeper than the 1,500 initially estimated. Monthly revisions reflect additional reports from businesses and government agencies.

The biggest job gains in July came in construction, which added about 3,800 positions, and trade, transportation and utilities, which grew by about 2,800. Leisure and hospitality lost about 1,800 jobs, and educational and health services declined by about 1,100.

Over the past year, Colorado has added 16,400 nonfarm payroll jobs, with the private sector up 5,500 and government up 10,900. Leisure and hospitality led private sector growth with about 6,600 jobs gained, followed by educational and health services with 5,700, information with 2,200, and manufacturing with 1,000. Job losses during that period included 4,000 in trade, transportation and utilities, 2,400 in financial activities, and 2,100 in professional and business services.

Colorado’s job growth rate of 0.6 percent trails the national pace of 1 percent.

The average workweek for private sector employees decreased from 33.5 to 33.4 hours over the year. Average hourly earnings rose from $37.77 to $38.93, more than $2 above the national average of $36.44.