Colorado currently ranks 42nd among states at 1.5% in terms of job growth.
The University of Colorado's 2024 Colorado Economic Outlook report has highlighted the challenges that lie ahead for the state's economy.
Despite a multitude of obstacles, including inflation, elevated interest rates, a worker shortage, and slowing consumer spending, the forecast suggests that Colorado's economy will remain resilient in 2024.
The report, compiled by the Business Research Division at the Leeds School of Business in collaboration with the State of Colorado, draws insights from 125 business leaders across various industries. It projects a job growth rate of 1.4% in 2024, with seven out of the state's 11 major industries expected to add more jobs.
While the forecast indicates slower job growth in 2024, Richard Wobbekind, the associate dean for business and government relations at Leeds and BRD faculty director, expressed satisfaction with the overall performance of the economy given the challenging financial environment.
Colorado experienced a notable slowdown in economic growth in 2023 due to rising interest rates.
The state's GDP increased by 2.2% in 2022 and 1.5% in the first quarter of 2023 compared to the national average of 1.6% growth during the same period. The report projects a 1.4% growth in national GDP for 2024 as consumption slows but remains resilient.
In terms of job growth, Colorado currently ranks 42nd among states at 1.5%.
However, the report suggests that when revisions are applied during the first quarter of 2024, the state is expected to move up in the ranking.
The unemployment rate in Colorado stood at 3.3% in October 2023, placing the state in the middle among all states.
Colorado also exhibited a high labor participation rate and outperformed 31 other states in terms of labor force growth.
The report highlights industries that are projected to add jobs in 2024, including professional and business services, government, education and health services, trade, transportation and utilities, leisure and hospitality, other services, and natural resources and mining.
However, four industry groups are projected to experience job losses in 2024: construction, manufacturing, information, and financial activities.
In addition to the economic outlook, the report also touches on other sectors:
The agriculture sector is facing challenges due to high production costs and lower crop prices, although the beef cattle segment remains strong.
Colorado's craft brewing industry, which has shown resilience and adaptability in recent years, is expected to continue driving economic growth and job creation.
The report also acknowledges the impact of the pandemic on unemployment rates among minority communities in Colorado, with recovery still underway.
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Overall, the University of Colorado's economic outlook suggests that Colorado's economy will face headwinds in 2024 but has the potential to remain resilient. The state will need to navigate challenges such as inflation, interest rates, and worker shortages while capitalizing on the growth potential of various industries to ensure continued economic stability and prosperity.