Colorado’s economy remained mixed in the third quarter and still outperformed the nation | CU Boulder today

Job growth in Colorado continued in the third quarter of 2022, driven by growing labor force participation and increased demand for workers, according to a new report released Tuesday by the University of Colorado Boulder and Colorado Secretary of State Jena Griswold.

The Quarterly Business and Economic Indicators Report is produced by the Leeds Business Research Division (BRD) at CU Boulder in conjunction with the Colorado Secretary of State’s Office. The most recent report for the third quarter of 2022 shows that Colorado saw 43,657 new business filings, up 14.5% year over year and up 10.6% quarter over quarter — a notable departure from previous years , where filings tend to decline seasonally from Q2 through Q3.

Front page of the report on economic indicators

Click here to read the Colorado Secretary of State’s Quarterly Business and Economic Indicators Report for the Third Quarter of 2022.

But arrears and liquidations also posted strong year-on-year growth, signaling business strains. There were 11,614 resolutions in Q3, up 27.1% year-on-year but slightly down on Q2.

“Today’s quarterly economic indicators report has much to celebrate,” Minister Griswold said. “With the state’s GDP, employment, income and workforce above the national average, we must ensure Colorado’s working families and business community thrive.”

Colorado employment in September 2022 increased 4.1% (113,000) year-on-year, 16thth-Best in the nation. The largest annual increases have been in hospitality, professional and business services, and other services. Nationwide, there were 3.5 million job openings in September with wages below $50,000.

In terms of wage growth, the low-wage industries experience the greatest gain. In the first quarter of 2022 (latest available data), industries with average annual wages under $50,000 saw the largest annual growth (12.2%).

Nationwide, there were 3.5 million job openings in September with wages below $50,000.

Colorado’s personal income per capita ranked eighth with per capita income of $73,357 and personal income per capita growth (6%) ranked first.

“Our latest data shows that Colorado’s economy continues to excel compared to the rest of the nation,” said Rich Wobbekind, senior economist and BRD faculty director. “However, business leaders remain pessimistic about the near-term economic outlook. Ahead of the fourth quarter of 2022, the Leeds Business Confidence Index was at 39.8 – in bear territory.”

Inflation remains a concern for business leaders, although price growth improved slightly in September. The consumer price index in the Denver-Aurora-Lakewood region rose 7.7% year-on-year in September 2022, compared to growth of 8.2% nationwide.

After shrinking for two consecutive quarters, the national real gross domestic product (GDP) grew 2.6% qoq and 1.8% year-on-year in the third quarter. Colorado’s real GDP fell at an annualized rate of 2% in the second quarter (latest available data), but real GDP growth rose 3% year-on-year.

Retail gasoline prices rose 1.8% year-on-year in October but fell 24.7% from the June peak. According to the Baker Hughes Rig Count, Colorado rigs doubled year over year in October 2022, with 22 active rigs.

The Colorado Business and Economic Indicator Dashboard, launched by the Colorado Office of the Secretary of State in conjunction with BRD, provides monthly information on key economic statistics and trends affecting the state.