Press Release: Colorado Employment Situation – May 2026

Nonfarm Payroll Jobs Decrease by 400 in May; Unemployment Rate Unchanged at 3.9 Percent

Household survey data

• According to the survey of households, the number of unemployed individuals decreased by 500 to 125,900 from April to May. Colorado's seasonally adjusted unemployment rate was unchanged over the same time period at 3.9 percent. The national unemployment rate was unchanged at 4.3 percent from April to May.
  
• Colorado's labor force decreased by 9,400 in May to 3,206,200. The share of Coloradans participating in the labor force was 65.9 percent in May, two-tenths of a percentage point lower than in April, this marks the lowest labor force participation rate since August 2020. The U.S. labor force participation rate was unchanged at 61.8 percent in May.
  
• The number of individuals employed in Colorado decreased by 8,900 in May to 3,080,300, which represents 63.3 percent of the state's 16+ population. Colorado's employment-population ratio of 63.3 percent in May decreased two-tenths of a percentage point from May. The national employment-population ratio increased one-tenth of a percentage point from the month prior to 59.2 percent in May.

Establishment survey data

• Employers in Colorado lost 400 nonfarm payroll jobs from April to May for a total of 2,966,500 jobs, according to the survey of business establishments. Private sector payroll jobs were unchanged, while government decreased by 400.
  
• April estimates were revised down to 2,966,900, and the over the month change from March to April was an increase of 10,900 jobs rather than the originally estimated increase of 11,800 (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 May were: educational and health services (≈1,900) and trade, transportation, and utilities (≈1,000). The private industry sectors with significant over the month job losses were: financial activities (≈2,000) and manufacturing (≈1,200).
  
• Since May 2025, nonfarm payroll jobs have increased by 100, with the private sector increasing by 3,600 and government losing 3,500 jobs. The largest private sector job gains were in education and health services (≈17,100) and construction (≈3,400). During that same period, payroll jobs declined in financial activities (≈5,400), other services (≈3,700), information (≈3,400), manufacturing (≈2,800), and mining and logging (≈1,000). Colorado's rate of job growth over the past year is 0.0 percent, below the U.S. rate of 0.3 percent.
  
• Over the year, the average workweek for all Colorado employees on private nonfarm payrolls increased from 33.0 to 33.2 hours, while average hourly earnings grew from$39.03 to $39.82, two dollars and twenty-nine cents more than the national average hourly earnings of $37.53.

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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 June 2026 Colorado Employment Situation will be released at 8:00 AM on Friday, July 17, 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 May 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

May 2026 Press Release