The government sector has now returned to pre-pandemic employment levels, the latest jobs report from the Colorado Department of Labor and Employment shows, while the state’s unemployment rate held steady at 2.8% for May.

The number of unemployed people rose by 600 from April to May, reaching 90,000, although the unemployment rate remains unchanged. Colorado’s rate has remained below 3% for 13 consecutive months and is at pre-pandemic levels, the household survey found.

That is the longest streak since a 17-month period spanning from late 2016 to early 2018, state Economist Ryan Gedney said at a press conference Friday.

The state’s unemployment rate remains below the national rate, which increased slightly to 3.7% last month.

Colorado was tied with Massachusetts and Oklahoma for the 17th lowest unemployment rate in the nation. Nebraska, New Hampshire and South Dakota have the lowest unemployment rate at 1.9% and Nevada had the highest rate at 5.4%.

The state labor force climbed by 9,400 in May to 3,244,400, with 68.7% of Coloradoans joining the labor force.

“That is just one-tenth a percentage point shy of its February 2020 level,” Gedney said.

The national labor force participation rate was 62.6% in May, the same as in April.

The number of people employed in the state rose by 8,800 in May, reaching 3,154,500. That comprises 66.8% of the state population 16 and older. The last time Colorado saw that employment-population ratio was January 2020. The national ratio went down marginally to 60.3%.

There were 55 Colorado counties that had May unemployment rates less than or equal to the U.S. seasonally adjusted rate of 3.4%. 

Boulder and Fort Collins had the lowest rates of 2.5% and 2.4% respectively. Denver, Colorado Springs, Grand Junction and Greeley all had rates between 2.8% and 2.9%. The state recommends comparing these rates to the statewide rate of 2.8%.

The number of nonfarm payroll jobs grew by 3,900 from April to May, and now sits at 2,900,500 jobs. Private sector payroll jobs rose by 2,800.

“That marks the first time since September that a positive number of private jobs have been added in consecutive months for the state,” Gedney said.

Government jobs rose by 1,100, meaning Colorado’s government sector has returned to pre-pandemic levels.

State officials corrected its past estimate of over-the-month change in nonfarm payroll jobs from April. The gain was actually 6,100 compared to March, not the 7,200 originally reported.

The May report showed mixed industry level growth, and an equal number of supersector gains and losses, Gedney said.

“Other services” showed a 3,900 gain, leisure and hospitality gained 2,900 jobs, and manufacturing rose by 1,300. As for significant over-the-month declines, professional and business services lost 1,900 jobs, construction declined 1,800 and financial activities declined by 1,200.

In the past year, nonfarm payroll jobs increased by 30,200 in total. The private sector grew by 13,000 jobs while government added 17,200. Leisure and hospitality boasted the highest job gains in the private sector, increasing by 21,200 since May 2022. Meanwhile, financial activities declined by 10,600 jobs.

And how long are Coloradans’ workweeks? The average workweek over the past year for private sector nonfarm employees decreased slightly from 33.7 to 33.5 hours. Average hourly earnings grew from $34.68 to $35.72. That’s $2.28 more than the national average of hourly earnings, which is $33.44.

Work hours in the week have been relatively flat over the year, Gedney said, and down slightly from the post-pandemic surges.

There has been little change in weekly hours over the last few years, he said. The average number of hours worked in the first five months of 2023 for the private sector was 33.2 hours. In 2022, it was 33.3 hours, and in 2021 it was 33.4 hours.

Looking at how the hourly wage has changed over the year, the average wage gains over the first five months of the year are a little under 4%. In the same time last year, wage gains were a little under 8%. Adjusted for inflation, wages are down 1.9%, he said, which is “trending with inflation.”