September 18, 2026

Colorado Labor Market Update – August 2026

Summary

Colorado lost 1,400 nonfarm jobs in August, reversing the moderate growth seen in July. Private-sector employment declined by 900 jobs, while government employment fell by 500. The state’s unemployment rate also rose to 4.0% after remaining unchanged at 3.9% for seven consecutive months.

Key Findings

• Over the past year, Colorado’s job growth remained average. The state ranks 29th among states in nonfarm employment growth over this time.
• In August, Colorado’s total employment fell by 1,400 jobs. The private sector lost 900 jobs, while government employment declined by 500.
• Colorado’s LFPR dropped for the seventh consecutive month. It fell by 0.2 percentage points in August for a total of 1.7 ppt over the last year.
• Colorado’s unemployment rate rose to 4.0% after remaining unchanged at 3.9% seven consecutive months. The state ranks 24th nationally.

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