Colorado Employment Situation — December 2025 – Nonfarm Payroll Jobs Increase by 1,200 in December; Unemployment Rate Decreases to 3.8 Percent

Colorado Employment Situation for December of 2025

Household survey data 

• According to the survey of households, the number of unemployed individuals decreased by 2,000 to 123,800 from November to December. Colorado’s seasonally adjusted unemployment rate decreased by one-tenth of a percentage point over the same time period to 3.8 percent. The national unemployment rate decreased by one-tenth of a percentage point to 4.4 percent from November to December.
• Colorado’s labor force decreased by 3,300 in December to 3,259,400. The share of Coloradans participating in the labor force was 66.9 percent in December, one-tenth of a percentage point lower than in November, this marks the lowest labor force participation rate since October 2020. The U.S. labor force participation rate decreased one-tenth of a percentage point to 62.4 percent in December.
• The number of individuals employed in Colorado decreased by 1,300 in December to 3,135,600, which represents 64.3 percent of the state’s 16+ population. Colorado’s employment-population ratio of 64.3 percent in December decreased one-tenth of a percentage point from November. The national employment-population ratio increased one-tenth of a percentage point from the month prior to 59.7 percent in December.

Establishment survey data 

• Employers in Colorado gained 1,200 nonfarm payroll jobs from November to December for a total of 3,000,100 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 300, while government gained 900 jobs.
• November estimates were revised down to 2,998,900, and the over the month change from October to November was an increase of 1,300 jobs rather than the originally estimated increase of 2,700 (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 December were: education and health services (≈2,800) and manufacturing (≈1,400). The private industry sectors with significant over the month job losses were: leisure and hospitality (≈2,300) and trade, transportation, and utilities (≈1,800).
• Since December 2024, nonfarm payroll jobs have increased 23,000, with the private sector increasing by 18,900 and government adding 4,100 jobs. The largest private sector job gains were in educational and health services (≈14,700), leisure and hospitality (≈4,200), other services (≈3,900), and information (≈3,400). During that same period, payroll jobs declined in financial activities (≈3,300), construction (≈2,100), and trade, transportation, and utilities (≈1,800). Colorado’s rate of job growth over the past year is 0.8 percent, above the U.S. rate of 0.4 percent.
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls decreased from 33.7 to 32.5 hours, while average hourly earnings grew from $39.67 to $40.65, three dollars and sixty-three cents more than the national average hourly earnings of $37.02.

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