Colorado closed out 2022 with continued strong job growth, outpacing the nation in many areas, according to a report released Monday by the University of Colorado Boulder and Colorado Secretary of State Jenna Griswold.
Quarterly business and economic indicators reports are produced by Leeds Business Research Division (BRD) at CU Boulder in collaboration with the Office of the Colorado Secretary of State. The latest report for the fourth quarter of 2022 shows that Colorado recorded 48,806 new entity submissions for her, the largest quarter in the history of the report. The number of applications filed increased 37.2% year-on-year and 11.8% quarter-on-quarter.
However, delinquencies and dissolutions also increased year-on-year. In the fourth quarter, he had 13,293 dissolutions, up 17% year-on-year and up 14.5% quarter-on-quarter.
Existing renewals continue to be positive, up 2.9% year-over-year (171,210 renewals) in Q4 and 4.5% quarter-over-quarter.
“Colorado continues its upward trajectory,” Secretary of State Griswold said. Declining fast, Colorado continues to lead in terms of business ownership and operations.”
State inflation continued to improve, but remained high. In the Denver-Aurora-Lakewood area, the November 2022 consumer price index (CPI) rose 6.9% year-over-year, while nationally he was 7.1%.
State job growth in December 2022 increased 3.7% year-over-year (104,700 jobs), the eighth-best result in the nation. Other Services, Professional and Business Services, and Leisure and Hospitality saw the largest annual increases.
In-state resident employment (based on household surveys that include the self-employed) increased by 100,000 (3.3%) year-over-year in December. As the number of unemployed fell, resident employment growth outpaced labor force growth (74,000 or 2.3% year-on-year), creating a situation similar to a labor shortage.
“Businesses have been vocal about labor shortages for years,” said Rich Wobbkind, senior economist and faculty director at the BRD. “Current data show that Colorado has the second-highest labor force participation rate in the nation, yet employers are catching most of the available workers. The situation perpetuates what appears to be a labor shortage from the perspective of employers.”
The state’s high labor force participation rate is driving down unemployment and boosting wages. Colorado’s unemployment rate fell to 3.3% in December, below the national unemployment rate of 3.5%.
With per capita personal income of $75,557, Colorado ranks 7th in the nation and ranked first in per capita personal income growth (7.9%) for the second consecutive quarter.
Colorado’s real gross domestic product (GDP) increased 3.2% year-over-year in the third quarter, the sixth highest in the nation. Domestic real GDP also increased by 3.2% in the third quarter.
Retail gasoline prices remain flat across the state: prices began to normalize in late 2022 after a sharp rise at the beginning of the year, according to the Energy Information Administration. Prices in January 2023 were down $1.22 per gallon statewide compared to the June peak, but mid-January prices were up $0.92 per gallon from the end of December.
Launched by the Office of the Secretary of State of Colorado in partnership with BRD, the Colorado Business and Economic Indicators Dashboard provides monthly information on key economic statistics and trends impacting the state.