City job market continues bleak streak

The Colorado Springs area job market slid a little closer in July to recession as unemployment inched higher for the fifth time in the past six months and payroll growth continued to slow, the Colorado Labor and Employment Department reported today.

The area's July unemployment rate, which is adjusted for seasonal changes, rose to 6.1 percent, the highest in nearly five years, from 6 percent in June. A year ago, 4.3 percent of the area's residents were out of work.

Payroll numbers in today's report reinforced a slowing local economy - just 1,100 more people held payroll jobs in July than did a year ago, a 0.4 percent growth rate. That is the slowest growth since June 2007 and down from 0.7 percent growth in June. The payroll numbers come from a survey of area employers and are not adjusted for seasonal changes, while the jobless rate is calculated from a survey of area residents.

"The local economy is struggling to keep its head above water," said Dave Bamberger of Bamberger & Associates, a Colorado Springs-based economic research and analysis firm. "It is still moving ahead, but it is moving slower than slow motion. Our economy is feeling the effects of the national economic problems, including the housing industry downturn, the credit industry difficulties and rising inflation."

Rapid job growth during the past 12 months in the area's health care industry, public schools and the service industry barely offset job cuts in construction, manufacturing, information technology and financial services industries.

Statewide unemployment numbers followed a similar trend, increasing to 5.2 percent in July from 5.1 percent in June to the highest monthly rate since June 2005. The state's jobless rate was 3.8 percent in July 2007. State officials attributed the deteriorating job market conditions to sluggish seasonal hiring by employers in construction and retailing, leaving few summer jobs available for the state's youth.

Statewide payroll growth during the previous 12 months remained unchanged in July at 1.3 percent with strong growth in the energy and health care industries more than making up for declines in construction and manufacturing.

The national unemployment rate in July rose to 5.7 percent from 5.5 percent in June.

Contact the writer: 636-0234 or wayneh@gazette.com