Located in:
- II. Strategic Elements
The Unified or Combined State Plan must include a Strategic Planning Elements section that analyzes the State’s current economic environment and identifies the State’s overall vision for its workforce development system. The required elements in this section allow the State to develop data-driven goals for preparing an educated and skilled workforce and to identify successful strategies for aligning workforce development programs to support economic growth. Unless otherwise noted, all Strategic Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs. Where requirements identify the term “populations”, these must include individuals with barriers to employment as defined at WIOA Section 3. This includes displaced homemakers; low-income individuals; Indians, Alaska Natives, and Native Hawaiians; individuals with disabilities, including youth who are individuals with disabilities; older individuals; ex-offenders; homeless individuals, or homeless children and youths; youth who are in or have aged out of the foster care system; individuals who are English language learners, individuals who have low levels of literacy, and individuals facing substantial cultural barriers; farmworkers (as defined at section 167(i) of WIOA and Training and Employment Guidance Letter No. 35-14); individuals within 2 years of exhausting lifetime eligibility under the Temporary Assistance for Needy Families program; single parents (including single pregnant women); and long-term unemployed individuals. Additional populations include veterans, unemployed workers, and youth, and others that the State may identify.
- a. Economic, Workforce, and Workforce Development Activities Analysis
The Unified or Combined State Plan must include an analysis of the economic conditions, economic development strategies, and labor market in which the State’s workforce system and programs will operate.
- a. Economic, Workforce, and Workforce Development Activities Analysis
II. a. 1. B. Workforce Analysis
The Unified or Combined State Plan must include an analysis of the current workforce in the State and within various state regions. Provide key analytical conclusions in aggregate as well as disaggregated among populations to identify potential disparities in employment and educational attainment and understand labor force conditions for items (i)-(iii) below. Populations analyzed must include individuals with barriers to employment described in the first paragraph of Section II. Analysis must include—
i. Employment and Unemployment
Provide an analysis of current employment and unemployment data, including labor force participation rates, and trends in the State.
ii. Labor Market Trends
Provide an analysis of key labor market trends, including across existing industries and occupations.
iii. Education and Skill Levels of the Workforce
Provide an analysis of the educational and skill levels of the workforce.
Current Narrative:
To gain a better understanding of the workforce trends in the State of Colorado, state level data is compiled to have a holistic view of the workforce. The Talent Pipeline Report is published to guide Colorado towards its workforce goals. This document, in addition to labor market data from the Colorado Department of Labor and Employment (CDLE), is used to create the workforce analysis.
(i) Employment and Unemployment
The Colorado seasonally adjusted unemployment rate for September 2023 was 3.2%.
Unemployment by Metropolitan Statistical Area
| Metro Area | 2019 | 2020 | 2021 | 2022 | Year-to-date - Sept. 2023 |
|---|---|---|---|---|---|
| Boulder | 2.3% | 5.7% | 4.4% | 2.5% | 2.8% |
| Colorado Springs | 3.2% | 6.8% | 5.7% | 3.2% | 3.3% |
| Denver-Aurora-Lakewood | 2.6% | 7.0% | 5.5% | 3.0% | 3.1% |
| Fort Collins | 2.3% | 5.9% | 4.7% | 2.7% | 2.8% |
| Grand Junction | 3.3% | 6.9% | 5.8% | 3.4% | 3.4% |
| Greeley | 2.5% | 6.5% | 5.8% | 3.2% | 3.2% |
| Pueblo | 3.9% | 7.6% | 8.0% | 4.4% | 4.3% |
Data not seasonally adjusted
Source: Bureau of Labor Statistics, Local Area Unemployment statistics (LAUS)
(ii) Labor Market Trends
Colorado’s economy continued to outpace national averages this year, ranking third in the nation overall during 2023 according to this year’s U.S. News and World Report. Colorado added 42,700 additional jobs to the state between August 2022 and August 2023. Nearly 64% of this job growth happened in rural areas of the state – creating new economic opportunities for the rural workforce in 2023. Colorado’s robust recovery from the COVID-19 pandemic included returning to pre-pandemic unemployment rate levels at 2.8% in January 2023. In August 2023, the state was proud that with more Coloradans actively working or looking to join the labor market, the state returned to its pre-pandemic employment-to-population ratio of 66.6% in August 2023. The employment-to-population ratio reflects how many Coloradans aged 16+ are employed.
Colorado’s labor force participation rate (LFPR) remained unchanged at 68.7% for the fourth month in a row in July, ranking 5th highest nationally. Average hourly earnings saw roughly a 5% annual growth, from $34.60 to $35.91, outpacing the national average by $2.17 per hour in July, but slowing down from the nearly 8% boost workers saw in 2022 in response to surging inflation levels.
The statewide unemployment rate increased slightly in August, reaching above 3% for the first time in 16 months at 3.1%. It still sits below the U.S. total rate, however, which rose from 3.5% to 3.8% over the same period. Colorado’s unemployment rate has ranged between 2.6% and 3.1% since April 2022.
At CDLE, we heavily rely on the Current Population Survey (CPS) to describe the state of the workforce across multiple demographics, allowing us to track employment status trends across sex, age, race, Hispanic origin, educational attainment status, unemployed individuals, and veterans. Through our partners at the State Demographer’s Office, we are also able to access workforce data on low-income individuals and individuals with disabilities. Current employment trends across demographics in Colorado include:
- Strong recovery for Coloradan women in 2023, with a lower unemployment rate relative to men and the gender’s pre-pandemic level.
- Hispanic or LatinX populations experiencing the highest unemployment numbers relative to all other racial and ethnic categories between January 2023 and December 2023.
- Employment and educational attainment continue to foster a positive relationship - as one advances their education, they are more likely to be employed and less likely to be unemployed.
- The unemployment rate for veterans is one-half of the rate for nonveteran Coloradans.
(iii) Education and Skill Levels of the Workforce
As highlighted in the CDHE 2023 Return on Investment Report and in alignment with national trends about employment and education, statewide data continue to illustrate a correlation between employment and education levels for Coloradans in the workforce this year.
The table below shows Colorado’s employment rate by education level. We see a clear relationship between education and unemployment in the state during 2022 and 2023. As education attainment increases, so too does the rate of employment.
The table below also reports the unemployment rate for each education level included in the Current Population Survey (CPS). The third column shows Coloradans who have attained some college or associate degree. Next to the third column are data that show as Coloradans receive more education, employment rates increase and unemployment decreases. The data collection groups “some college or an associate degree” as one sample group. This may artificially raise the unemployment rate of Coloradans with an associate degree as it includes individuals who drop out of college.
Overall, the data suggest that higher educational attainment positively impacts increased workforce participation and lower unemployment rates.
| Education Level | Employment Rate | Unemployment Rate |
|---|---|---|
| Less than a high school diploma | 49.7% | 6.0% |
| High school graduates, no college | 59.7% | 2.9% |
| Some college or associate degree | 64.5% | 3.0% |
| Bachelor's degree and higher | 74.9% | 1.6% |