County jobless rate makes summer jump
The unemployment rate in El Paso County jumped to 5.7 percent in June from 4.8 percent in May as students entered the job market for the summer.
The increase reported Tuesday by the Colorado Labor and Employment Department makes it appear the local job market took a big step backward last month. The rate is down sharply from 6.9 percent in June 2003, when the local economy was struggling.
When adjustments are made for seasonal factors, however, the county’s jobless rate for June falls to 5.1 percent — the lowest in nearly three years, according to calculations by Fred Crowley, senior economist for the Southern Colorado Economic Forum.
“The unemployment rate is dropping faster than I had expected and could go as low as 4.5 percent by the end of the year,” Crow- ley said.
“People are finding jobs, some in the tourism industry and others in consulting, as the local economy continues to improve.”
That growth is expected to slow late this year when 7,000 Fort Carson troops are sent to Iraq or Afghanistan. Crowley said a larger deployment — more than 12,000 troops — that ended this year hampered the local economy from recovering.
A separate report based on the department’s monthly payroll survey of employers showed businesses continue to add jobs, but at a modest rate. The unemployment rate comes from a survey of households. Local payrolls in June were up by 0.7 percent from a year ago.
That’s because the local manufacturing and telecommunications industries are still a drag on the local economy, shedding 1,000 jobs in the 12 months ended in June. Without those loses, local payrolls would have grown by 1.1 percent from a year earlier.
“The local technology sector is still struggling to emerge from the recession,” said Dave Bamberger of Bamberger & Associates, a local economic consulting firm.
An expansion and hiring announced by Intel Corp. this month likely won’t show up in the payroll numbers until later this year, he said.
Much of the local payroll growth this year has been in tourism, retailing and financial services. Crowley and Bamberger expect that local job growth will accelerate this year as Intel and other employers who have announced expansions begin hiring.
Statewide unemployment and job numbers showed little change last month. The state’s jobless rate in June remained unchanged from May at 4.9 percent.
The state reported payroll employment in June was up 1 percent from a year ago, the third consecutive monthly gain.
“The Colorado economy, like the national economy, is experiencing steady job growth coupled with a stable unemployment rate,” said Jeff Wells, executive director of the state’s Labor and Employment Department.
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