Colorado reported the biggest drop of any state in its February unemployment rate, but labor economists aren’t sure if they can trust the number.
The state’s seasonally adjusted unemployment rate declined from 4.7 percent in January to 4.3 percent in February, the Colorado Department of Labor and Employment reported Thursday.
The U.S. unemployment rate stayed flat at 4.8 percent in February, according to the U.S. Bureau of Labor Statistics. Thirty-three states reported rising unemployment levels, and rates in another six states remained steady.
The number of unemployed reported in Colorado fell by 7,900 during the month, and nonfarm payrolls rose by 14,900.
Economists say Colorado employers shouldn’t worry that all the good workers are disappearing – yet.
Given the small sample of households in the survey, February’s big move may reflect a statistical anomaly.
“A drop that large over one month would cause you to be wary of taking that at face value,” said Michael Rose, chief of unemployment insurance research with the Colorado Department of Labor and Employment. “It is a little unusual.”
Until the February drop, Colorado’s unemployment levels were following the national average.
Ski resorts and surrounding towns have seen strong hiring, said Peter Meersman, president and CEO of the Colorado Restaurant Association. “They have record snowfall and record sales. I know they are busy, busy,” he said.
The ski season will end in April, and state labor economists are calling for Colorado’s unemployment rate to rise in coming months.
Last month, leisure and hospitality employers reported a jump in payrolls of 1,300 positions. Several mountain counties reported sizeable declines in unemployment. Pitkin County’s unemployment rate was 2.6 percent, Routt County 2.9 percent, Summit County 3.1 percent and Eagle County 3.2 percent.
Governments in the state added 10,600 people to their payrolls as workers returned from the winter break.
Education and health services payrolls rose by 2,000; professional and business services added 1,400 and construction gained 1,200 workers despite cold weather.
Manufacturing, information and natural resources remained fairly flat.
The trade, transportation and utilities category suffered a lower-than-expected seasonal loss of 2,300 jobs. Retailers, which are included in the category – continued to let workers go.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
