Colorado Employment Situation – January 2026

6,600 Nonfarm Payroll Jobs Added in January; Unemployment Rate Rises to 3.9 Percent

Household survey data 

• According to the survey of households, Colorado’s seasonally adjusted unemployment rate increased one-tenth of a percentage point in January to 3.9 percent compared to the revised December rate of 3.8 percent. The number of unemployed individuals grew by 1,200 over the same time period to 126,300. The national unemployment rate decreased one-tenth of a percentage point to 4.3 percent from December to January.
• Colorado’s labor force decreased by 5,200 in January to 3,248,800. The share of Coloradans participating in the labor force decreased to 66.8 percent in January, compared to 66.9 percent the month prior, this marks the lowest labor force participation rate since September 2020. The U.S. labor force participation rate was 62.1 percent in January, three-tenths of a percentage point lower than the month prior.
• The number of individuals employed in Colorado decreased by 6,400 in January to 3,122,600, which represents 64.2 percent of the state’s 16+ population. Colorado’s employment-population ratio of 64.2 in January is two-tenths of a percentage point lower than the December rate of 64.4. The national employment-population ratio decreased three-tenths of a percentage point in January to 59.4 percent.
• Establishment survey data 
• Employers in Colorado gained 6,600 nonfarm payroll jobs from December to January for a total of 2,966,000 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 7,200, while government decreased by 600 jobs.
• The private industry sectors with significant over the month job gains in January were: educational and health services (≈4,800), professional and business services (≈3,000), trade, transportation, and utilities (≈3,000), construction (≈2,400), and other services (≈1,100). The private industry sectors with significant over the month job losses were: leisure and hospitality (≈3,300), manufacturing (≈1,300), information (≈1,300) and financial activities (≈1,200).
• Since January 2025, nonfarm payroll jobs have decreased 11,000, with the private sector losing 7,000 and government losing 4,000 jobs. The largest private sector job gains were in educational and health services (≈14,200) and other services (≈1,900). During that same period, payroll jobs declined in trade, transportation, and utilities (≈4,500), leisure and hospitality (≈4,400), manufacturing (≈4,200), financial activities (≈4,000), information (≈2,800), professional and business services (≈2,300), and mining and logging (≈1,600). Colorado’s rate of job growth over the past year is -0.4 percent, below the U.S. rate of 0.2 percent.
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls decreased from 32.7 to 32.6 hours, while average hourly earnings grew from $39.79 to $40.62, three dollars and forty-five cents more than the national average hourly earnings of $37.17.

Annual averages and benchmark revisions to 2025 data

The annual unemployment rate for Colorado was 4.0 percent in 2025, revised down from the previously published 4.5 percent. The U.S. unemployment rate in 2025 was 4.3 percent.

Colorado nonfarm payroll employment decreased at an annual rate of -0.4 percent in 2025, or -11,700 jobs. The U.S. annual payroll jobs growth rate in 2025 was 0.1 percent.

In accordance with annual practice, both establishment and household survey data estimates for Colorado undergo a benchmarking process. The benchmark process results in revisions to estimates for prior years. More information on the benchmarking process is available at the Bureau of Labor Statistics website.

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