Colorado economy lost 8,900 jobs in February, mostly tied to King Soopers strike
King Soopers Strike Sends Shockwave Through Colorado Job Market
The recent King Soopers strike in Colorado had a significant impact on the state’s employment numbers. According to a monthly update from the Colorado Department of Labor and Employment, the strike resulted in a net loss of 8,900 jobs between January and February. This pushed the state’s 12-month employment gain to a mere 500 jobs, highlighting the fragile nature of the job market.
Despite the strike, Colorado’s unemployment rate remained at 4.7%, lagging behind the national rate of 4.1%. The state now shares the 45th spot for the worst unemployment rate with Alaska, indicating a challenging economic landscape.
Economist Gary Horvath noted that Colorado is facing a $1.2 billion budget shortfall, which will likely lead to program cuts in the coming years. While there are positive developments in the state’s economy, the weak job growth leaves Colorado vulnerable to external factors that could further impact employment.
The strike saw around 10,000 King Soopers workers off the job, contributing to an 11,000 job decline in the trade, transportation, and utilities sector. However, with these workers returning to their positions in February, the March employment figures are expected to show improvement.
Overall, Colorado’s job growth has been lackluster, with only 500 jobs added over the past year. This represents a 0% annual growth rate, falling behind the national rate of 1.2%. The private sector has shed 14,700 jobs since February 2024, while the public sector has added 15,200 jobs, indicating a shift in hiring trends.
Looking ahead, budgetary restrictions and potential federal workforce cuts could further strain Colorado’s job market. The state may transition from a period of growth to one of contraction, reflecting the challenges facing the economy.
Despite these hurdles, Colorado remains resilient. The state weathered the impacts of COVID-19 and continues to navigate through economic uncertainties. Stay informed about the latest business news by signing up for our Economy Now newsletter.
