Press Release: Colorado Employment Situation – January 2026

6,600 Nonfarm Payroll Jobs Added in January; Unemployment Rate Rises to 3.9 Percent

Household survey data

• According to the survey of households, Colorado's seasonally adjusted unemployment rate increased one-tenth of a percentage point in January to 3.9 percent compared to the revised December rate of 3.8 percent. The number of unemployed individuals grew by 1,200 over the same time period to 126,300. The national unemployment rate decreased one-tenth of a percentage point to 4.3 percent from December to January.
  
• Colorado's labor force decreased by 5,200 in January to 3,248,800. The share of Coloradans participating in the labor force decreased to 66.8 percent in January, compared to 66.9 percent the month prior, this marks the lowest labor force participation rate since September 2020. The U.S. labor force participation rate was 62.1 percent in January, three-tenths of a percentage point lower than the month prior.
  
• The number of individuals employed in Colorado decreased by 6,400 in January to 3,122,600, which represents 64.2 percent of the state's 16+ population. Colorado's employment-population ratio of 64.2 in January is two-tenths of a percentage point lower than the December rate of 64.4. The national employment-population ratio decreased three-tenths of a percentage point in January to 59.4 percent.

Establishment survey data

• Employers in Colorado gained 6,600 nonfarm payroll jobs from December to January for a total of 2,966,000 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 7,200, while government decreased by 600 jobs.
  
• The private industry sectors with significant over the month job gains in January were: educational and health services (≈4,800), professional and business services (≈3,000), trade, transportation, and utilities (≈3,000), construction (≈2,400), and other services (≈1,100). The private industry sectors with significant over the month job losses were: leisure and hospitality (≈3,300), manufacturing (≈1,300), information (≈1,300) and financial activities (≈1,200).
  
• Since January 2025, nonfarm payroll jobs have decreased 11,000, with the private sector losing 7,000 and government losing 4,000 jobs. The largest private sector job gains were in educational and health services (≈14,200) and other services (≈1,900). During that same period, payroll jobs declined in trade, transportation, and utilities (≈4,500), leisure and hospitality (≈4,400), manufacturing (≈4,200), financial activities (≈4,000), information (≈2,800), professional and business services (≈2,300), and mining and logging (≈1,600). Colorado's rate of job growth over the past year is -0.4 percent, below the U.S. rate of 0.2 percent.
  
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls decreased from 32.7 to 32.6 hours, while average hourly earnings grew from $39.79 to $40.62, three dollars and forty-five cents more than the national average hourly earnings of $37.17.

###

Annual averages and benchmark revisions to 2025 data

The annual unemployment rate for Colorado was 4.0 percent in 2025, revised down from the previously published 4.5 percent. The U.S. unemployment rate in 2025 was 4.3 percent.

Colorado nonfarm payroll employment decreased at an annual rate of -0.4 percent in 2025, or -11,700 jobs. The U.S. annual payroll jobs growth rate in 2025 was 0.1 percent.

In accordance with annual practice, both establishment and household survey data estimates for Colorado undergo a benchmarking process. The benchmark process results in revisions to estimates for prior years. More information on the benchmarking process is available at the Bureau of Labor Statistics website.

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.

The February 2026 Colorado Employment Situation will be released at 8:00 AM on Wednesday, April 22, 2026. Due to the federal government shutdown that occurred in October 2025, there is no household survey data available for October 2025 and subsequent releases for monthly state level estimates from the household and establishment surveys have been delayed by approximately three weeks. Typical production schedules are set to resume in June 2026 with the release of May 2026 data. The full schedule of release dates for calendar year 2026 estimates is available Labor Market Information.

Technical Notes

This release provides information on industry employment and labor force statistics for January 2026, the most current estimates available from the Colorado Department of Labor and Employment. The reference period for the establishment and household surveys 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

January 2026 Press Release