Report: Colorado’s new business filings up nearly 26% from 2020
Colorado’s new business filings experienced record gains in quarter two of 2021, increasing by 25.7% compared to the same quarter in 2020, according to a report released Wednesday.
The Quarterly Business and Economic Indicators report from the University of Colorado Boulder and Secretary of State’s Office concluded that this puts Colorado “firmly in recovery mode” following the economic impacts from the COVID-19 pandemic.
A total of 39,252 new corporations, nonprofits and other business entities were filed in the second quarter, bringing the 12-month total to 157,300. Though up 25.7% from 2021, the filings were down 12.3% from last quarter, which is typical for the season, the report said.
The 12-month total filings experienced a 26.3% increase from last year — setting a new record for the largest absolute and percentage gains year-over-year, the report said.
In addition, quarter two’s business renewals were up 1.7% from last year with 154,995 renewals, the number of businesses in good standing increased by 9.6% and Colorado’s gross domestic product increased by 1.4%.
Colorado outpacing the U.S. in pandemic job recovery, ends historic run
“Colorado is on the road to recovery despite historic economic challenges,” said Secretary of State Jena Griswold. “While the latest data is encouraging, we know that the pandemic has deepened wealth and income inequalities in our state and many Coloradans have not seen a return to pre-pandemic normal.”
Within Colorado, different regions have experienced different level of economic recovery.
The report found that Colorado Springs, Fort Collins and Denver lead the state in highest employment recovery, while Boulder and Greeley lag behind the rest of the state, as well as the national average.
Colorado’s overall unemployment is currently at 6.2% — 35th highest in the country. Colorado is still down 99,900 jobs from the January 2021 peak and jobless claims remain at around 5,000 per week, the report said.
However, Colorado’s labor force participation is third highest in the country at 68.5% and labor force growth is 23rd highest.
Denver metro leaders celebrate economic recovery, set sights on homelessness in State of the City
“The high participation rate indicates many Coloradans are employed or actively seeking employment,” said Richard Wobbekind with the CU Boulder Leeds Business Research Division. “This trend could lead to a full jobs recovery from the recession in 2022.”
Though not everything trended positively in quarter two. Business dissolutions increased by 6.9% compared to last year, trade name filings decreased by 3.6% and trademark filings decreased by 12.5%, the report said.
Business leaders in the state continue to be optimistic about the economy’s recovery ahead of third quarter, measuring their confidence as an average of 67.3. A score of 50 is neutral.
The leaders expressed optimism about surging demand and the reopening of the economy, but remained concerned about inflation, worker shortages and supply chain constraints, the report said.