Gov. Jared Polis has formed a new “Competitiveness Council” in an effort to restore Colorado’s reputation as an innovation hub and engine of job creation.
The council includes business leaders from a variety of industries, as well as state and local economic development officials, according to an announcement made Wednesday afternoon.
Their task will be to analyze “the current business landscape” and develop a “shared vision for the future.” Findings will be provided to the legislature and all gubernatorial candidates.
“Colorado is appearing more towards the middle of the pack in terms of competitiveness — that should be a wake-up call to all of us,” Polis said.
Rather than waiting for the next governor to address the problem, Polis wants to deliver a list of action items, including legislative fixes, before leaving office in January.
In April, Dan Caruso and 260 other business leaders warned in a letter that the state was losing its long-held reputation as a leading hub for startups, innovation and venture capital investment.
The group, known as Engage Colorado, urged officials and policymakers to prioritize pro-business policies, reduce regulatory friction, and address the rising cost of doing business.
Caruso also argues that more robust economic development incentives are needed to compete with “winning” states like Texas.
While , Polis has zeroed in on the state’s high housing costs, which put it at a disadvantage in recruiting workers.
“Where we are lagging is cost of living, and housing is the biggest part of that. We are starting to turn the corner,” Polis said.
Last month, the Colorado Office of Economic Development and International Trade launched the first of a series of listening sessions with business leaders and employers across the state.
Colorado’s nonfarm employment peaked in June 2024 at 2,979,900 jobs. Last month, it was down by 9,100 positions to 2,970,800, according to the U.S. Bureau of Labor Statistics.
The losses are especially severe in the information sector, which is a bellwether for technological innovation. The June 2026 count of 64,800 jobs is down by 19% or 15,200 jobs from the June 2022 recent peak of 80,000.
That is larger than the 11% decline nationally. The last time information sector employment was so low in Colorado was in the summer of 1995.
An acceleration in the use of artificial intelligence explains some of that. Colorado, while a global leader in quantum computing, has lagged behind in AI.
But Polis emphasized that technology is only one part of a much larger economy and that his council will take a much broader look.
An especially worrisome development in the past two years is the shrinkage of the state’s labor force. Even if companies wanted to expand, fewer workers are available to hire.
The state’s labor force peaked at 3,274,230 people working or actively seeking work in October 2024. Last month, it stood at 3,193,263. That represents a loss of nearly 81,000 workers over 20 months.
Where did those workers go? Colorado’s population is aging, and more people are retiring. After a long stretch of lower birth rates, fewer young adults are entering the workforce than in prior decades. More discouraged workers may be simply dropping out.
Domestic net migration, a major source of workers in recent decades, has evaporated. International immigration briefly plugged the gap, but that has dried up as well under the Trump administration.
Colorado’s population last year grew at its slowest pace since 1990, at the tail end of the oil bust.
Despite the lack of job creation, a shrinking labor force has kept the unemployment rate at a low 3.9%.
Normally, a shrinking labor pool and a shrinking job base are accompanied by a recession, but that isn’t the case currently.
Both the U.S. and Colorado economies grew at a 2.1% pace last year after adjusting for inflation. And the U.S. GDP growth rate accelerated to 2.7% in the first quarter.
“Colorado isn’t as competitive as it used to be, and everyone building or backing companies here can feel it. The data backs that up, and pretending otherwise helps no one,” Seth Levine, a partner and co-founder at Foundry, a Boulder-based venture capital firm, said in the letter.
Besides Lieberman and Levine, other members of the council include:
● J. J. Ament, president & CEO of the Denver Metro Chamber of Commerce
● Debbie Brown, president of the Colorado Business Roundtable
● Dan Caruso, managing director, Caruso Ventures
● Marielena DeSanctis, chancellor of the Colorado Community College System
● Binh Diep, general manager at Slalom
● Raymond Gonzales, president of the Metro Denver Economic Development Corporation
● Cory Finney, managing partner at Howdy Partners
● Loren Furman, president and CEO of the Colorado Chamber of Commerce
● Zaneta Kelsey, CEO of Access Mode
● Wendy Lea, chair of Energize Colorado
● Brittany Morris Saunders, president and CEO of the Colorado Technology Association
● Marc Nager, managing partner at Howdy Partners
● Johnna Reeder Kleymeyer, president and CEO, Colorado Springs Chamber & EDC
● George Sparks Jr., president and CEO of Denver Museum of Nature and Science
● Walker Stapleton, former Colorado Treasurer and a commissioner of the Colorado Economic Development Commission
● Jason Wardrip, business manager at the Colorado Building and Construction Trades Council
