Colorado's economy is looking up but not sky high. The latest economic forecast from the Leeds School of Business at the University of Colorado Boulder projects some positive trends in 2026. Most of the state's major industries are expected to add jobs and Colorado's real GDP has some wind in its sails. The Leeds forecast estimates a rise of nearly 3%, but the state is only expected to add 17,500 jobs in 2026.
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"The labor market is constrained, particularly by slower population growth, which is dampened by lower levels of international immigration. When employment can't expand as quickly, productivity has to pick up," said Leeds senior economist Richard Wobbekind.
Increasing immigration enforcement was among a list of key risks to Colorado's economy next year. Tariffs, inflation, and higher health care premiums were also among the big challenges ahead.
Meanwhile, education and health services, trade, transportation, utilities, and government sectors are forecasted to grow. Together, these sectors make up most Colorado jobs.
But other industries in the state are struggling, and some are expected to post losses next year. The state's information sector, which includes publishing and traditional media, has lost around 2,400 jobs so far this year - the most since 2005. Fewer job losses are expected in 2026, but that could change depending on how AI technology expands. AI demand for data centers could create jobs, but companies using AI to streamline might mean more layoffs.
Manufacturing has been declining for three years in a row, and tariffs and worker shortages could make a rebound difficult. People are spending less, and that has the leisure and hospitality sector looking fairly stagnant in 2026.
Agriculture is also facing some big uncertainties. Farm income in the state is expected to tumble next year, with major commodities losing some value. Crop producers are the most vulnerable, feeling the effects of a volatile trade war. It's unclear if President Trump's recent aid will help keep them afloat through 2026.
Learn more about the outlook for 2026.
