Press Release: Colorado Employment Situation – September 2026

Nonfarm Payroll Jobs Increase by 2,400 in September; Unemployment Rate Increases to 4.1 Percent

Household survey data

• According to the survey of households, the number of unemployed individuals increased by 3,800 to 131,900 from August to September. Colorado's seasonally adjusted unemployment rate increased one-tenth of a percentage point to 4.1 percent over the same time period. The national unemployment rate increased one-tenth of a percentage point to 4.2 percent from August to September.
  
• Colorado's labor force decreased by 3,100 in September to 3,179,300. The share of Coloradans participating in the labor force was 65.2 percent in September, one-tenth of a percentage point lower than in August. The September rate of 65.2 percent marks the lowest participation rate on record, going back to 1976. The U.S. labor force participation rate increased two-tenths of a percentage point to 61.8 percent in September.
  
• The number of individuals employed in Colorado decreased by 6,900 in September to 3,047,400, which represents 62.5 percent of the state's 16+ population. Colorado's employment-population ratio of 62.5 percent in September decreased two-tenths of a percentage point from August. The national employment-population ratio increased one-tenth of a percentage point from the month prior to 59.2 percent in September.

Establishment survey data

• Employers in Colorado gained 2,400 nonfarm payroll jobs from August to September for a total of 2,973,800 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 3,000, while government decreased by 600.
  
• August estimates were revised up to 2,971,400, and the over the month change from July to August was a decrease of 300 jobs rather than the originally estimated decrease of 1,400 (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 September were: construction (≈1,900), professional and business services (≈1,400), and information (≈1,100). The only private industry sector with significant over the month job losses in September was: trade, transportation, and utilities (≈1,900).
  
• Since September 2025, nonfarm payroll jobs have increased by 11,200, with the private sector increasing by 17,000 and government decreasing by 5,800 jobs. The largest private sector job gains were in education and health services (≈13,100), leisure and hospitality (≈8,300), construction (≈5,900), and professional and business services (≈5,000). During that same period, payroll jobs declined in financial activities (≈4,500), information (≈3,500), trade, transportation, and utilities (≈3,000), other services (≈2,200), and manufacturing (≈1,800). Colorado's rate of job growth over the past year is 0.4 percent, above the U.S. rate of 0.3 percent.
  
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls increased to 33.4 hours, while average hourly earnings grew from $39.40 to $40.19, two dollars and thirty-eight cents more than the national average hourly earnings of $37.81.

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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 October 2026 Colorado Employment Situation will be released at 8:00 AM on Friday, November 20, 2026. The full schedule of release dates for calendar year 2026 estimates is available at Labor Market Information.

Technical Notes

This release provides information on industry employment and labor force statistics for September 2026, 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

September 2026 Press Release