Colorado’s unemployment rate continues to rise for a third month in a row.
The statewide unemployment rate hit 3.7% in March, up from 3.5% the month before, according to preliminary data released Friday from the Colorado Department of Labor and Employment. The state saw an increase of 3,700 unemployed people, bringing the total to 118,000.
It’s still below the national average but the gap shrank to its smallest margin in the past year as the U.S. unemployment rate fell from 3.9% to 3.8%.
Colorado’s unemployment is expected to continue climbing this year due to the high interest rate environment and could hit 4%, former state economist Ryan Gedney told reporters last month.
Meanwhile, the Denver metro area saw its unemployment rate fall from 4.2% in February to 3.9% in March.
Colorado’s labor force is also slowly shrinking as the Baby Boomer generation continues to retire. Participation declined by 300 workers and hit 68%.
But job growth is still on the rise in the tight labor market.
Colorado’s job growth was at 2.1%, according to the CDLE, above the national average of 1.9%.
Employers added 5,300 jobs between February and March across the state. About 2,700 were private sector jobs and 2,600 were government roles. The most jobs added in the private sector were within professional and business services, adding 2,100 jobs.
The most job losses were in construction, which saw a decline of 1,500 jobs.
The Boulder Metropolitan Statistical Area had the lowest unemployment rate in the state at 3.5%. Pueblo had the highest at 5.2%. Colorado Springs reported a 4% unemployment rate.
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