The Colorado labor market slowed as 2023 progressed. Specifically, the private sector was flat during the second half of the year. On the other hand, U.S. real GDP growth was stronger than expected.

In November, Colorado employment declined by 700 jobs, and there was a downward revision to the October employment. Despite the softness, the state is on track to add between 50,000 and 60,000 jobs in 2023 after the benchmark revisions are released in March. Economic activity and the labor market will be weaker in 2024. Average annual job growth for the period 2012 to 2019 was 66,000. The 2023 level is well off the record total of 114,000 new workers in 2022.

The impact of inflation outweighs the positive aspects of the economy for many Coloradans. The inflation rate is slowing; however, Coloradans are struggling because of its accumulated effect. In addition, higher interest rates are impacting many sectors. On a positive note, about 72 million passengers passed through DIA in 2023, and passenger traffic was exceptional at the Colorado Springs airport. For details, check out the November data review at https://cber.co/economic-updates/.

Finally, the 2024 cber.co forecast will be published in the second half of January.