Colorado unemployment applicants struggle with delays

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As the economic disruption caused by COVID-19 and subsequent shutdowns hit Colorado in early 2020, the state’s unemployment system faced a significant challenge in handling the surge of applications. The Colorado Department of Labor and Employment saw a dramatic increase in initial claims from under 100,000 in 2019 to nearly 800,000 in 2020 and close to 1 million in 2021. This spike in claims overwhelmed the system, leading to delays in processing and difficulties for claimants in accessing benefits.

Despite a decrease in the number of claims as the economy started to recover, complaints about the bureaucratic hurdles faced by unemployed individuals in Colorado have persisted. Many claimants reported spending weeks trying to reach a live person at the department, with some experiencing emotional and financial strain due to the delays in receiving benefits.

Issues such as high claim volumes, challenges with the new computer system, and backlogs due to ID verification difficulties have contributed to the delays in processing claims. The department received numerous complaints from individuals who faced obstacles in accessing their benefits, with some resorting to legal action against the labor department.

While efforts have been made to improve the processing of claims, including hiring additional call center agents and implementing automation where appropriate, the system continues to face challenges. The decrease in federal funding and the rise in claims from federal workers laid off due to government downsizing have added to the strain on the department.

Individuals like Misha McGinley and Penelope Eppling shared their struggles with the unemployment system, highlighting the frustration and financial hardships they faced while waiting for benefits. Despite ongoing efforts to streamline the process and address the issues, many claimants continue to experience delays and difficulties in accessing their much-needed financial support.

The exterior of 707 17th Street in Denver on March 11, 2025, where the Colorado Department of Labor and Employment has leased about 131,000 square feet in the office tower. The state agency will downsize its footprint when it moves its main office within downtown Denver later this year. (Photo by Helen H. Richardson/JS)

Despite ongoing challenges, the Colorado Department of Labor and Employment continues to work towards improving the unemployment system and providing much-needed support to those in need. Efforts to streamline processes, increase staffing, and address technological limitations are underway to ensure a smoother experience for claimants in the future.

As the state grapples with the aftermath of the pandemic and economic uncertainties, the importance of a robust and efficient unemployment system remains paramount in supporting individuals and families during challenging times.

For more information on Colorado’s unemployment system and resources, visit the Colorado Department of Labor and Employment website.