Colorado Employment Situation — July 2025 – Unemployment rate decreases to 4.5%

Nonfarm Payroll Jobs Increase by 3,700 in July; Unemployment Rate Decreases to 4.5 Percent

Household survey data 

• According to the survey of households, the number of unemployed individuals decreased by 7,200 to 148,100 from June to July. Colorado’s seasonally adjusted unemployment rate decreased by two-tenths of a percentage point over the same time period to 4.5 percent. The national unemployment rate increased one-tenth of a percentage point to 4.2 percent from June to July.
• Colorado’s labor force decreased by 2,700 in July to 3,280,300. The share of Coloradans participating in the labor force was 67.6 percent in July, one-tenth of a percentage point lower than the month prior. The U.S. labor force participation rate decreased one-tenth of a percentage point to 62.2 percent in July.
• The number of individuals employed in Colorado increased by 4,500 in July to 3,132,200, which represents 64.5 percent of the state’s 16+ population. Colorado’s employment-population ratio of 64.5 percent in July remained unchanged from the month prior. The national employment-population ratio decreased one-tenth of a percentage point to 59.6 percent in July.

Establishment survey data 

• Employers in Colorado gained 3,700 nonfarm payroll jobs from June to July for a total of 2,987,100 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 2,900, while government gained 800 jobs.
• June estimates were revised down to 2,983,400, and the over the month change from May to June was a decrease of 2,700 jobs rather than the originally estimated decrease of 1,500 (monthly revisions are based on additional responses from businesses and government agencies since the last published estimates).
• The private industry sectors with significant over the month job gains in July were: construction (≈3,800) and trade, transportation, and utilities (≈2,800). The private industry sectors with significant over the month job losses were: leisure and hospitality (≈1,800) and educational and health services (≈1,100).
• Since July 2024, nonfarm payroll jobs have increased 16,400, with the private sector increasing by 5,500 and government adding 10,900 jobs. The largest private sector job gains were in leisure and hospitality (≈6,600), educational and health services (≈5,700), information (≈2,200), and manufacturing (≈1,000). During that same period, payroll jobs declined in trade, transportation, and utilities (≈4,000), financial activities (≈2,400), and professional and business services (≈2,100). Colorado’s rate of job growth over the past year is 0.6 percent, below the U.S. rate of 1.0 percent.
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls decreased from 33.5 to 33.4 hours, while average hourly earnings grew from $37.77 to $38.93, two dollars and forty-nine cents more than the national average hourly earnings of $36.44.

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