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Colorado Employment Returns To Pre-Recession Levels

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Unemployment in Colorado decreased slightly in the final month of 2014, to its lowest level since before the onset of the Great Recession.

The state added 4,700 jobs in December – enough to shrink the unemployment rate to 4.0 percent. The last time the rate was that low was October 2007.

"That is somewhat remarkable," said the Department of Labor's Chief Economist Alexandra Hall. "We know we've been seeing an improving economy in Colorado for all of 2014, and we're continuing to hit milestones – good milestones – as the economy improves."Colorado's unemployment rate has fallen by more than 2 percent since Dec. 2013, and has been tracking well below the national unemployment rate, which is currently 5.6 percent.

Although the official revised estimates for 2014 won't be released until March 2015, Hall said they'll show 2014 grew at a faster pace than 2013.

"Overall, 2014 was a great year for Colorado," she said.

One potential downside for Colorado's economy might be the dramatic fall in oil prices. That's especially a concern in Weld County, which is home to a large portion of the state's oil and gas industry.

"There's a really high chance we'll see the lower oil prices start impacting payroll jobs in the Greeley area, and see some contraction there," Hall said. But even if that happens, she adds it's not likely to be as devastating as the pullout of natural gas producers from the Western Slope in 2008, when prices for natural gas fell sharply.

"The people who moved out there for those jobs had very little options as far as finding other employment, whereas in the north-central Colorado area, they're relatively close to the Front Range, where we're seeing a lot of growth in other industries," Hall said.

"Overall, 2014 was a great year for Colorado."

Those industries seeing the largest gains in December were professional and business services, construction, and the tourism sector. Colorado's largest declines over the month were in trade, transportation and utilities.

If oil prices rebound in the next few months, Hall said the impact is likely to be minimal; however, if the price slump continues, Colorado's oil and gas industry could start to see layoffs or cuts.

Nationwide, unemployment rates fell in 42 states in Dec. 2014. Despite the recent plunge in oil prices, job gains have remained healthy in states where the oil and gas industry makes up a large part of their economies. Texas gained 45,700 jobs – the most in the nation.

As the host of KUNC’s new program and podcast In the NoCo, I work closely with our producers and reporters to bring context and diverse perspectives to the important issues of the day. Northern Colorado is such a diverse and growing region, brimming with history, culture, music, education, civic engagement, and amazing outdoor recreation. I love finding the stories and voices that reflect what makes NoCo such an extraordinary place to live.
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