Colorado Employment Situation – August 2026

• According to the survey of households, the number of unemployed individuals increased by 3,200 to 128,200 from July to August. Colorado’s seasonally adjusted unemployment rate increased one-tenth of a percentage point to 4.0 percent over the same time period. The national unemployment rate was unchanged at 4.1 percent from July to August.
• Colorado’s labor force decreased by 6,500 in August to 3,182,400. The share of Coloradans participating in the labor force was 65.3 percent in August, two-tenths of a percentage point lower than in July. The August rate of 65.3 percent marks the lowest participation rate on record, going back to 1976. The U.S. labor force participation rate increased two-tenths of a percentage point to 61.6 percent in August.
• The number of individuals employed in Colorado decreased by 9,800 in August to 3,054,200, which represents 62.7 percent of the state’s 16+ population. Colorado’s employment-population ratio of 62.7 percent in August decreased two-tenths of a percentage point from July. The national employment-population ratio increased twotenths of a percentage point from the month prior to 59.1 percent in August.

Establishment survey data 

• Employers in Colorado lost 1,400 nonfarm payroll jobs from July to August for a total of 2,970,300 jobs, according to the survey of business establishments. Private sector payroll jobs decreased by 900, while government decreased by 500.
• July estimates were revised down to 2,971,700, and the over the month change from June to July was an increase of 3,800 jobs rather than the originally estimated increase of 5,800 (monthly revisions are based on additional responses from businesses and government agencies since the last published estimates).
• The only private industry sector with significant over the month job gains in August was: leisure and hospitality (≈1,700). The only private industry sector with significant over the month job losses in August was: construction (≈2,200).
• Since August 2025, nonfarm payroll jobs have increased by 6,600, with the private sector increasing by 11,900 and government decreasing by 5,300 jobs. The largest private sector job gains were in education and health services (≈12,400), leisure and hospitality (≈9,000), construction (≈2,200), and professional and business services (≈1,900). During that same period, payroll jobs declined in information (≈5,600), financial activities (≈4,300), other services (≈1,100), trade, transportation, and utilities (≈1,100), and manufacturing (≈1,000). Colorado’s rate of job growth over the past year is 0.2 percent, below the U.S. rate of 0.4 percent.
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls increased to 34.3 hours, while average hourly earnings grew from $39.14 to $40.31, two dollars and fifty-six cents more than the national average hourly earnings of $37.75.

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