Colorado economy remained mixed in Q3, still outperforming the nation

Denver, November 16, 2022 - Colorado’s job growth continued in the third quarter 2022, propelled by growth in labor force participation and elevated 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 prepared by the Leeds Business Research Division (BRD) at CU Boulder in conjunction with the Colorado Secretary of State’s Office. The latest report for the third quarter 2022 shows that Colorado recorded 43,657 new entity filings, increasing year-over-year by 14.5% and 10.6% quarter-over-quarter––a notable deviation from past years where filings typically seasonally decrease from Q2 to Q3.

However, delinquencies and dissolutions also recorded strong growth year-over-year—signals of business strain. There were 11,614 dissolutions in Q3, up 27.1% year-over-year but down slightly from Q2.

“Today’s Quarterly Economic Indicators Report has much to celebrate,” said Secretary Griswold. “With the state’s GDP, employment, income, and labor force all ranking above the national average, we must ensure Colorado’s working families and business community thrive.”

Colorado’s September 2022 employment increased 4.1% year-over-year (113,000), 16th-best in the nation. The largest annual increases were in leisure hospitality, professional and business services and other services. Nationally, lower-income jobs with wages below $50,000 had more openings in September, with 3.5 million job openings.

In terms of wage growth, lower-paying industries experiences the largest gain. Q1 2022 (most current data available), industries with an average annual wage of less than $50,000 recorded the largest annual growth (12.2%).

Nationally, lower-income jobs with wages below $50,000 had more openings in September, with 3.5 million job openings.

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

“Our latest data shows Colorado’s economy continues to excel relative to the nation,” said Rich Wobbekind, senior economist and BRD faculty director. “However, business leaders still remain pessimistic of the short-term economic outlook. Ahead of Q4 2022, the Leeds Business Confidence Index stood at 39.8—in bear territory.”

Inflation remains a concern for business leaders, though price growth did improve modestly in September. The Consumer Price Index in the Denver-Aurora-Lakewood region increased 7.7% year-over-year in September 2022, compared to 8.2% growth in the nation.

After contracting two consecutive quarters, national real gross domestic product (GDP) grew 2.6% quarter-over-quarter in Q3, and 1.8% year-over-year. Colorado’s real GDP decreased at an annualized rate of 2% in Q2 (most recent data available), but real GDP growth increased 3% year-over-year.

Retail gasoline prices were up 1.8% year-over-year in October, but down 24.7% from the spike in June. According to the Baker Hughes Rig Count, rigs in Colorado doubled year-over-year in October 2022, with 22 active rigs.

You can find monthly information on key economic statistics and trends that impact the state on the Colorado Business and Economic Indicator Dashboard, launched by the Colorado Secretary of State's office in conjunction with BRD.