Colorado’s high unemployment rate flatlines, but economist says the state has a ‘healthy market for labor’ – AspenTimes.com

Report on Colorado’s Unemployment and Job Growth Trends with Emphasis on Sustainable Development Goals (SDGs)
Overview of Unemployment Rate Trends
Colorado’s unemployment rate has remained steady at 4.8% from March to May 2025, marking the highest level since September 2021 and exceeding the 4.1% rate reported in May 2024. This plateau in unemployment is interpreted by economists as a potential positive signal for the job market.
Job Growth and Economic Recovery
Despite the stalled unemployment rate, Colorado’s job growth shows signs of recovery:
- May 2025 saw a decrease of 100 unemployed residents compared to April.
- The annual job growth rate increased to 0.7%, up from 0.1% in March, although still below the national rate of 1.1%.
- Employers added 3,400 nonfarm payroll jobs from April to May, with private sector jobs increasing by 3,700 and government jobs decreasing by 300.
Regional Job Growth Variations
Job creation varied across Colorado’s regions:
- The Western Slope, particularly the Grand Junction metropolitan area, experienced the highest growth rate at 2.1% in May 2025.
- Denver’s job growth rate was 0.5% for the same period.
Comparative Unemployment Status
As of June 24, 2025, Colorado ranks seventh highest in unemployment among U.S. states, sharing the 4.8% rate with four other states. The national unemployment rate remains at 4.2%, below the threshold for full employment.
Analysis in the Context of Sustainable Development Goals (SDGs)
SDG 8: Decent Work and Economic Growth
Colorado’s labor market trends align with the objectives of SDG 8, which promotes sustained, inclusive economic growth and productive employment:
- The gradual job growth and reduction in unemployment in May 2025 indicate progress towards full and productive employment.
- Private sector job gains support economic diversification and resilience.
- Regional disparities highlight the need for targeted policies to ensure equitable economic opportunities across all areas.
SDG 10: Reduced Inequalities
Addressing regional differences in job growth supports SDG 10 by aiming to reduce inequalities within the state. The higher growth in the Western Slope compared to Denver suggests the importance of inclusive economic development strategies.
SDG 4: Quality Education and Lifelong Learning
Workforce participation and employment to population ratios reflect the state’s capacity to engage its labor force effectively, which is linked to education and skill development initiatives under SDG 4.
SDG 11: Sustainable Cities and Communities
Urban areas like Denver showing slower job growth compared to other regions emphasize the need for sustainable urban economic planning to support community well-being and employment.
Labor Market Insights and Expert Commentary
- The unemployment rate is a gradual indicator of economic health and tends to change slowly over time.
- Colorado’s labor force participation rate of 67.7% and employment to population ratio of 64.5% rank sixth and seventh nationally, indicating a healthy labor market.
- Factors influencing unemployment include demographic changes, sectoral shifts, federal layoffs, and workforce growth due to migration.
- New workforce entrants initially increase unemployment rates until they secure employment.
- Long-term labor market trends are more informative than short-term fluctuations, with no current indication of abnormal conditions.
Conclusion
Colorado’s current labor market situation reflects a stable yet evolving economic environment consistent with sustainable development principles. The state’s progress towards SDG 8 is evident through job creation and labor participation metrics, while attention to regional disparities aligns with SDG 10. Continuous monitoring and strategic planning are essential to maintain momentum towards inclusive and sustainable economic growth.
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Austin Colbert/The Aspen Times
1. Sustainable Development Goals (SDGs) Addressed or Connected
- SDG 8: Decent Work and Economic Growth
- The article focuses on unemployment rates, job growth, labor force participation, and economic health in Colorado, which directly relates to SDG 8’s aim to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
- SDG 10: Reduced Inequalities
- Regional disparities in job growth (e.g., Western Slope vs. Denver) imply issues related to inequality in economic opportunities, relevant to SDG 10’s goal to reduce inequality within and among countries.
2. Specific Targets Under Those SDGs
- SDG 8 Targets
- Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
- Target 8.6: Substantially reduce the proportion of youth not in employment, education, or training.
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
- SDG 10 Targets
- Target 10.2: Empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
3. Indicators Mentioned or Implied to Measure Progress
- Unemployment Rate
- The article provides specific unemployment rates for Colorado and compares them to national rates, which aligns with the indicator measuring the proportion of unemployed persons aged 15 and above (e.g., SDG Indicator 8.5.2).
- Job Growth Rate
- Data on job growth percentages and number of jobs gained or lost (e.g., 0.7% job growth, 3,400 nonfarm payroll jobs gained) serve as indicators of economic growth and employment creation.
- Labor Force Participation Rate
- The labor force participation rate (e.g., 67.7% in Colorado, 62.4% in the U.S.) is an important indicator of the active workforce, relevant to assessing employment levels and economic inclusion.
- Regional Employment Disparities
- Job growth rates by region (e.g., Grand Junction 2.1%, Denver 0.5%) imply indicators related to economic inequality and regional inclusion.
4. Table of SDGs, Targets, and Indicators
SDGs | Targets | Indicators |
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SDG 8: Decent Work and Economic Growth |
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SDG 10: Reduced Inequalities |
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Source: aspentimes.com