Press Release: Colorado Employment Situation — August 2025

Nonfarm Payroll Jobs Increase by 3,000 in August; Colorado Unemployment Rate Decreases to 4.2 Percent while U.S. Unemployment Rate Increases to 4.3 Percent

Household survey data

• According to the survey of households, the number of unemployed individuals decreased by 9,000 to 139,100 from July to August. Colorado's seasonally adjusted unemployment rate decreased by three-tenths of a percentage point over the same time period to 4.2 percent. The national unemployment rate increased by one-tenth of a percentage point to 4.3 percent from July to August.
  
• Colorado's labor force decreased by 4,700 in August to 3,275,600. The share of Coloradans participating in the labor force was 67.4 percent in August, two-tenths of a percentage point lower than the month prior, this marks the lowest labor force participation rate since December 2020. The U.S. labor force participation rate increased one-tenth of a percentage point to 62.3 percent in August.
  
• The number of individuals employed in Colorado increased by 4,200 in August to 3,136,500, which represents 64.6 percent of the state's 16+ population. Colorado's employment-population ratio of 64.6 percent in August increased one-tenth of a percentage point from the month prior. The national employment-population ratio remained unchanged from the month prior at 59.6 percent in August.

Establishment survey data

• Employers in Colorado gained 3,000 nonfarm payroll jobs from July to August for a total of 2,991,500 jobs, according to the survey of business establishments. Private sector payroll jobs increased by 3,300, while government lost 300 jobs.
  
• July estimates were revised up to 2,988,500, and the over the month change from June to July was an increase of 5,100 jobs rather than the originally estimated increase of 3,700 (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 August were: educational and health services (≈3,000) and professional and business services (≈1,700). The private industry sector with significant over the month job losses was: financial activities (≈2,100).
  
• Since August 2024, nonfarm payroll jobs have increased 18,300, with the private sector increasing by 8,800 and government adding 9,500 jobs. The largest private sector job gains were in educational and health services (≈8,700), leisure and hospitality (≈8,300), and information (≈1,800). During that same period, payroll jobs declined in financial activities (≈4,900), trade, transportation, and utilities (≈2,400), and professional and business services (≈1,700). Colorado's rate of job growth over the past year is 0.6 percent, below the U.S. rate of 0.9 percent.
  
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls increased from 33.3 to 33.5 hours, while average hourly earnings grew from $37.72 to $39.13, two dollars and sixty cents more than the national average hourly earnings of $36.53.

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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 September 2025 Colorado Employment Situation will be released at 8:00 AM on Friday, October 17, 2025. The full schedule of release dates for calendar year 2025 estimates is available at Labor Market Information.

Technical Notes

This release provides information on industry employment and labor force statistics for August 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.

BLS Preliminary Benchmark Revisio

On September 9, 2025, the Bureau of Labor Statistics (BLS) released its 2025 Preliminary Benchmark Revision concerning the National job level for the year ending March 2025 suggesting a reduction of 911,000 jobs relative to currently published total non-farm estimates. The preliminary benchmark reflects the difference between two independently derived employment counts, each subject to their own sources of error. These estimates are meant to be timely, support transparency, and are subject to change during annual processing early next year.

Resources Mentioned

August 2025 Press Release