Government hires are keeping the Colorado job market from slipping while the private sector struggles to gain traction, new employment numbers show.
Colorado’s unemployment rate held steady at 8 percent in May, largely thanks to 7,800 government hires, 7,600 of which were temporary census jobs, according to numbers released Friday by the Colorado Department of Labor and Employment.
After adjusting the data for seasonal job fluctuations, nonfarm employment shrank in all sectors except construction, government and other services.
“The malaise seems to stretch across the majority of the economy,” said Alexandra Hall, the department’s chief economist.
All told, seasonally adjusted nonfarm payrolls grew by 4,900 jobs in May after losses in most non-governmental sectors.
The state lost 1,600 jobs last month in trade, transportation and utilities, a broad sector that includes retailers.
“We’re still having employment issues in many areas because the credit markets are really tight,” Hall said. “Consumers and business are not spending.”
Colorado lost 1,100 jobs in the financial-activities sector and 1,000 jobs in information technology, after adjusting both numbers for seasonal shifts. Manufacturers cut 500 seasonally adjusted jobs.
The leisure and hospitality industry shed 700 more jobs than expected in May during the lull after the end of skiing season. Employers cut 6,800 total tourism and travel jobs when not accounting for seasonal shifts.
Construction was among the few growing job markets in May, adding 1,500 more jobs than expected for that time of year.
Hall said the growth was led by heavy construction and possibly aided by federally funded projects.
The national unemployment rate declined to 9.7 percent last month from 9.9 percent in April, according to the U.S. Bureau of Labor Statistics.
Colorado lagged behind 37 states that cut their unemployment rates, although most states’ new jobs were also largely attributable to census jobs.
Many states also trimmed their jobless figures after discouraged workers left the labor force. Unemployment rates only account for people actively looking for work.
Colorado’s civilian labor force grew by 1,600 jobs in May, including 500 new residents unsuccessfully looking for work.
Drew FitzGerald: 303-954-1381 or dfitzgerald@denverpost.com
