Press Release: Colorado Employment Situation — December 2025

Tuesday, January 27, 2026

Submitted by [user:fieldfirstname]

Nonfarm Payroll Jobs Increase by 1,200 in December; Unemployment Rate Decreases to 3.8 Percent

• According to the survey of households, the number of unemployed individuals decreased by 2,000 to 123,800 from November to December. Colorado’s seasonally adjusted unemployment rate decreased by one-tenth of a percentage point over the same time period to 3.8 percent. The national unemployment rate decreased by one-tenth of a percentage point to 4.4 percent from November to December.
• Colorado’s labor force decreased by 3,300 in December to 3,259,400. The share of Coloradans participating in the labor force was 66.9 percent in December, one-tenth of a percentage point lower than in November, this marks the lowest labor force participation rate since October 2020. The U.S. labor force participation rate decreased one-tenth of a percentage point to 62.4 percent in December.
• The number of individuals employed in Colorado decreased by 1,300 in December to 3,135,600, which represents 64.3 percent of the state’s 16+ population. Colorado’s employment-population ratio of 64.3 percent in December decreased one-tenth of a percentage point from November. The national employment-population ratio increased one-tenth of a percentage point from the month prior to 59.7 percent in December.

Establishment survey data

• Employers in Colorado gained 1,200 nonfarm payroll jobs from November to December for a total of 3,000,100 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 300, while government gained 900 jobs.
• November estimates were revised down to 2,998,900, and the over the month change from October to November was an increase of 1,300 jobs rather than the originally estimated increase of 2,700 (monthly revisions are based on additional responses from businesses and government agencies since the last published estimates).
• The private industry sectors with significant over the month job gains in December were: education and health services (≈2,800) and manufacturing (≈1,400). The private industry sectors with significant over the month job losses were: leisure and hospitality (≈2,300) and trade, transportation, and utilities (≈1,800).
• Since December 2024, nonfarm payroll jobs have increased 23,000, with the private sector increasing by 18,900 and government adding 4,100 jobs. The largest private sector job gains were in educational and health services (≈14,700), leisure and hospitality (≈4,200), other services (≈3,900), and information (≈3,400). During that same period, payroll jobs declined in financial activities (≈3,300), construction (≈2,100), and trade, transportation, and utilities (≈1,800). Colorado’s rate of job growth over the past year is 0.8 percent, above the U.S. rate of 0.4 percent.
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls decreased from 33.7 to 32.5 hours, while average hourly earnings grew from $39.67 to $40.65, three dollars and sixty-three cents more than the national average hourly earnings of $37.02. ###

Informational Section

All Colorado estimates from the establishment and household surveys, including greater geographic detail, are available at Colorado LMI Gateway. Estimates for all states and the nation are available at the Bureau of Labor Statistics. For data visualizations, visit CDLE’s Labor Market Information on Tableau.

Notice

Due to annual benchmarking, there is not an Employment Situation update released during the month of February. The Employment Situation update for January along with revisions to prior years would typically be published in March. However, due to the federal government shutdown that occurred from October 1, 2025 to November 12, 2025, the annual benchmarking process has been delayed and subsequent releases will also be delayed. The release dates for all 2026 state employment data are still being determined. Updates for state releases will be published on LMI’s Press Release page as they become available.

Technical Notes

This release provides information on industry employment and labor force statistics for December 2025, the most current estimates available from the Colorado Department of Labor and Employment. The reference period for the establishment survey was the pay period or week that includes the 12th of the month.

The unemployment rate, labor force, labor force participation, total employment, and the number of unemployed are based on a survey of households. The total employment estimate derived from this survey is intended to measure the number of people employed.

Nonfarm payroll jobs estimates are based on a survey of business establishments and government agencies, and are intended to measure the number of jobs, not the number of people employed. Other series based on this survey include private sector average weekly hours, average hourly earnings, and average weekly earnings.

The business establishment survey covers about seven times the number of households surveyed and is therefore considered a more reliable indicator of economic conditions. Because the estimates are based on two separate surveys, one measuring jobs by worksite and the other measuring persons employed and unemployed by household, estimates based on these surveys may provide seemingly conflicting results.

Resources Mentioned

December 2025 Press Release

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