Colorado's jobless rate rises to highest level in two years

Colorado's unemployment rate rose in July to 3.9% — its highest in two years, according to the state jobs report released Friday.

Why it matters: The uptick in joblessness could fuel fears that the labor market is slowing and the economy is at risk of a recession.

By the numbers: July's unemployment was up one-tenth of a percentage point from June.

• That's slightly below the national average of 4.3% — the highest since 2021.

Yes, but: Colorado's ongoing job growth suggests the market may not be as weak as the unemployment rate alone could indicate.

• The state's labor force added 4,800 jobs in July, a significant jump compared to 1,400 the month prior.
• The number of people employed in the state also increased by 3,600, up from 2,600 in June.

What they're saying: Speaking in Colorado Springs earlier this month, U.S. Federal Reserve governor Michelle Bowman said, "the recent rise in unemployment may be exaggerating the degree of cooling in labor markets [and] largely reflects weaker hiring, as job searchers entering the labor force are taking longer to find a job, while layoffs remain low."

The big picture: Colorado's jobless rate remains historically low. The last time the state saw unemployment above 3.9% was in 2015.