A hiring wanted sign invites potential employees to apply for a job at a discount store in Centennial, Colorado, Wednesday, April 3, 2024. (AP Photo/David Zalubowski)
David Zarbowski
The latest jobs report from the U.S. Bureau of Labor Statistics contains an unwelcome surprise for Coloradans.
The data showed Colorado added 72,700 fewer jobs in the 12 months ending in March than previously reported — roughly the number of seats at Empower Field at Mile High.
Monthly payroll estimates aren’t an exact science; numbers change frequently as more complete information comes in. But this week’s revisions were unusually large. The data showed the U.S. added 818,000 fewer jobs than previously thought, meaning the national job market is significantly weaker than previous figures suggested. Economists are closely watching the jobs report for signs that U.S. regulators are risking a recession by waiting too long to cut interest rates.
The BLS regularly revise its monthly payroll estimates using information gleaned from state records related to unemployment insurance. The updated figures are still preliminary and won’t be finalized until next year.
Colorado had the biggest downward revision of any state, and Missouri had the second-largest revision, reporting 54,200 fewer jobs than initially reported.
Colorado accounted for about 9% of the national adjustments, far more than would be expected given the size of the state’s workforce. Colorado makes up less than 2% of the national workforce, according to Tim Wonhoff, program manager for the Colorado Office of Labor Market Information. That means Colorado’s share of total adjustments should be about 16,000, Wonhoff said.
“Colorado’s revised amount appears to be higher than expected,” Wonghoff said in an emailed statement. “We are investigating and working with partners across the country to understand the estimated amount and investigate potential underlying causes.”
The Colorado Department of Labor has been dealing with employment data inaccuracies since last year, after an overhaul of the unemployment insurance system led to data-collection errors that made it difficult to get a complete picture of the state’s job market.
While the problem is improving, the data is still incomplete. The state relies on businesses to report employment gains and losses, but says it needs to work to “ensure that employers provide timely and accurate reporting.” The state’s labor department “continues to perform manual estimates to address underreporting and late reporting,” Wonhoff said.
Preliminary monthly data showed Colorado’s annual job growth rate was 1.5% in July. If newly updated data is accurate, Colorado’s job market may actually be shrinking.
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