Colorado’s economy continues to expand in 2018, even after signaling a slowdown at the beginning of the year. Job growth was revised upward to 2.4 percent growth for the year, according to the mid-year economic report from the Leeds Business Research Division at the University of Colorado Boulder.
The rebound follows a slowing of employment growth last September to less than 1.9 percent – the lowest level in almost six years. In June 2018, job growth increased 2.8 percent year-over-year.
The increase means about 15,000 more jobs than expected will be added through 2018, bringing the total to 62,000 new jobs by the end of the year.
The state’s gross domestic product also rose 4.5 percent year-over-year for first quarter 2018. The increase shows Colorado’s economy is continuing to grow after slowing to just 1.4 percent in 2016— the lowest level since 2010. Economic output rose to 3.6 percent in 2017.
Meanwhile, Colorado still has one of the lowest unemployment rates in the nation, logged in June 2018 at 2.7 percent. While fewer people have been moving to Colorado – dropping from 67,781 in 2016 to 46,626 in 2017 – more Coloradans are going into the labor force. The increase in workers has enabled continued employment growth, despite the decrease of people moving to the state.
Sectors leading the way in job growth are natural resources and mining, and construction.
Natural resources and mining have shown strong employment growth, according to Business Research Division Executive Director Richard Wobbekind. “Energy prices are obviously factoring into it,” Wobbekind notes.
The construction industry is “finally back to the same level of employment that they were at pre-recession. They are really mostly constrained by lack of available workforce,” he says.
While a shortage of skilled labor continues to challenge the construction industry, Bureau of Labor Statistics data shows construction employment across the state was 171,200 in June 2018, a 5.2 percent year-over-year increase. This surpasses the last peak of 170,100 in July 2007. Average annual pay for construction workers was $59,446 in 2017, slightly above the average Colorado pay of $56,916.
Agriculture’s outlook is not as robust, however. Drought, wildfires, and low prices are slowing growth. For example, corn prices have declined more than 30 percent from five years ago.
“It’s a tough road to hoe in some of the rural areas,” Wobbekind said.
Read the full Mid-Year Economic Update at https://www.colorado.edu/business/2018/08/17/state-economy-adding-thousands-more-jobs-expected-report-predicts
Boulder stands tall when compared with much larger metropolitan areas that excel in innovation and entrepreneurship.
A report produced by the Boulder Economic Council compares Boulder with leading innovation centers including Silicon Valley, San Francisco, Austin, Boston, Seattle, Portland, Denver and Raleigh. Though these metropolitan areas have a much larger population than Boulder, they were selected as peer communities following input from local focus groups and ranking reviews published by Inc., Forbes, and others.
To get a meaningful comparison, data was normalized for population size and other measures in analysis by CU-Boulder’s Leeds School of Business Research Division.
And the news is good, according to findings published in the Boulder Innovation Venture Report. Boulder compares favorably in key success metrics from education and jobs to quality of life. The area is challenged, however, by a lack of affordable housing to supply its workforce with a place to live.
The Boulder metro area ranks first among the peer communities for the percentage of population 25 and up who hold a bachelor’s degree or higher. Over 60 percent of residents have a bachelor’s degree, which is among the highest in the United States.
In the jobs ranking, the City of Boulder has about 100,000 jobs, a number two or three times larger than almost any other U.S. city comparable in population size. Among those jobs, Boulder has the second highest concentration of science, technology, engineering and math (STEM) occupations among all the peer regions.
Boulder has the second-highest per capita venture capital investment in comparison to the peer communities.
In fact, Boulder is ranked number one nationally in the “Bloomberg Brain Concentration Index,” which tracks business formation as well as employment and education in the sciences, technology, engineering and mathematics.
Drilling down into the creative services industry – advertising agencies and web and app developers – outdoor recreation and food manufacturing, Boulder’s concentration of local businesses was significantly higher than peer communities.
Even in coffee shops the Boulder area percolates, achieving a tie with the Seattle-Tacoma-Bellevue metro for the highest concentration of coffee shops among peer communities. Boulder outranked all the peer cities on restaurants per 1,000 residents.
While any amount of time stuck in traffic is too much, Boulder drivers spend less than all but one of the peer communities with 10 percent of total driving time in congestion. Boston drivers spend the most time driving in congestion.
The challenge for Boulder is housing affordability, according to the report. Measured by median metro area home values, Boulder has the third highest housing costs among its peer communities, behind the San Jose and San Francisco regions and just ahead of Seattle and Boston. But the city is not alone – its peer communities face the same challenge. All but one of the metro areas studied for this report ranked among the 25 most expensive housing markets in the U.S.
For the full Boulder Innovation Venture Report, visit: http://issuu.com/boulderchamber/docs/innovation_venture_report_v26?e=33607933/61913820