Colorado’s Divergent Trends Among Public and Private Employment

April 14, 2025

Introduction 

Colorado added just 500 total nonfarm jobs between February 2024 and February of this year, the sixth lowest total among all states. However, a deeper trend emerges when examining changes in the state’s public and private employment levels over this time. While Colorado ranked poorly against the nation when comparing total nonfarm job growth, its public and private sector ranking diverged completely. The state’s public sector grew 3.15%, the second highest rate in the country, yet private sector employment fell by 0.6%, the second largest decrease in the country. 

The state’s current budget discussion should recognize the extraordinary growth in government employment in the last five years, indeed to the point of supplementing private enterprise employment with public employment.

Key Findings 

• Between February 2024 and February 2025, Colorado’s private sector lost 14,700 jobs, equivalent to a 0.6% decrease in private employment, the second largest decrease in the country. 
  •  Over the same period, employment in the state’s public sector jumped by 15,200 jobs, a 3.15% growth, the second highest growth rate in the nation.
• On net, Colorado added just 500 jobs over the most recent 12 months.  

Total Nonfarm Employment 

Colorado gained 500 nonfarm payroll jobs between February 2024 and February 2025. This is the sixth-lowest overall job growth among U.S. states in that time period. 

This represents a 0.02% growth in jobs, which is again the sixth-lowest growth rate among U.S. states. In contrast, Colorado neighbors Idaho and Utah had a 2.67% and 2.05% growth rate, respectively. 

Private Employment 

Colorado’s frozen job growth over the last year masks a downturn in private employment. 

Between February 2024 and February 2025, Colorado has lost 14,700 private sector jobs. This is the nation’s second-largest loss in private employment behind Arizona, which lost 15,100 private sector jobs. Nationwide, only seven states did not gain private sector jobs between February 2024 and February 2025: West Virginia, Kansas, Indiana, Massachusetts, Colorado, and Arizona. 

Colorado’s private employment growth rate in the last year was -0.59%, the second-lowest among U.S. states.

Public Employment

Conversely, as Colorado’s private employment has fallen at some of the nation’s highest levels, its public employment has grown at some of the nation’s fastest rates. 

Between February 2024 and February 2025, Colorado gained 15,200 public employment jobs. This is the nation’s sixth-highest growth in public employment. 

In this time, Colorado’s public employment grew by 3.19%, the second-highest rate in the country. 

Bottom Line

Colorado’s job growth has remained largely stagnant over the past year, with only 500 jobs added between February 2024 and February 2025. However, this stagnation does not stem from stability in the public and private sectors; rather, both have experienced significant fluctuations. Private sector employment declined by 14,700 jobs, while the public sector expanded substantially, adding 15,200 jobs. This surge in public hiring has effectively masked a dismal year for private sector job growth, leaving Colorado in the troubling position of relying on government employment to sustain its job market.