Denver Job Market Update: Growth and Challenges in December 2024
As of December 2024, Denver’s job market grew by 0.4% over the past year, adding 6,800 jobs. Education and health services expanded by 2.5% (+5,100 jobs), and the government sector grew by 3.2% (+7,000 jobs). However, the information sector declined by 4.3% (-2,200 jobs), highlighting sector-specific challenges.
The unemployment rate rose to 4.1% in September 2024, up from 3.1% the previous year, reflecting a more competitive job market. Despite challenges, Denver’s diverse economy and growth in key sectors support overall employment stability.
Unemployment Rate in Denver
Over the past three months, Denver’s unemployment rate has shown a gradual increase:
- September 2024: 4.5%
- October 2024: 4.5%
- November 2024: 4.6%
- December 2024: 4.7% (preliminary)
This upward trend indicates a slight rise in joblessness within the Denver-Aurora-Lakewood metropolitan area.
Job Growth and Employment Trends
Over the past three months, Denver’s labor market has experienced the following job growth:
- September 2024: -4,200 jobs
- October 2024: -2,500 jobs
- November 2024: -1,800 jobs
- December 2024: +1,200 jobs (preliminary)
This data indicates a net loss of 5,300 jobs over the period, reflecting a downward trend in employment.
Wage and Salary Trends
In the first quarter of 2024, the average weekly wage in the Denver area was $1,820, surpassing the national average of $1,527. This indicates a competitive compensation environment for workers in the region.
Minimum Wage Adjustments
As of January 1, 2024, Denver’s minimum wage increased to $18.29 per hour, with tipped workers earning $15.27 plus tips. These adjustments align with the rising cost of living, and wages are set to increase to $18.81 per hour in 2025. Annual changes are tied to the Consumer Price Index to ensure wages keep pace with inflation, supporting workers and maintaining compliance.
Sector-Specific Wage Trends
The business and financial operations sector reported an average hourly wage of $46.04, above the national average of $43.55.
Industry-Specific Data
Construction
The construction sector has seen declines over the past three months, largely due to a slowdown in apartment construction and regulatory changes affecting development.
Technology
Technology remains a strong contributor to Denver’s job market, although hiring has slowed. Roles for software developers and cybersecurity professionals remain in demand.
Healthcare
Healthcare employment grew by 2.9% year-over-year, driven by high demand for medical professionals, including nurses and medical assistants.
Professional Services
Finance and accounting roles in professional services continue to grow steadily, while legal and consulting positions are showing stabilization.
Engineering
The engineering sector has seen stable demand, especially for civil and electrical engineers. Infrastructure projects and renewable energy developments are driving steady hiring in this field.
Forecast and Economic Outlook
Colorado’s economic expansion is expected to continue through April 2025, driven by steady job creation and resilience. However, growth may slow due to higher interest rates and reduced consumer spending.
Labor Force Participation Rate
As of late 2024, Colorado’s labor force participation rate declined slightly to 68.3%, indicating a modest reduction in the proportion of working-age individuals actively employed or seeking employment.
Business and Employer Sentiment
Business confidence has dipped, with leaders expressing concerns over inflation, interest rates, and political uncertainty, reflecting a cautious outlook for the near term.
Contact Us
Ready to navigate the Denver labor market with confidence? Reach out to Tier2Tek Staffing today! Whether you’re looking for top talent or need assistance with your hiring needs, our team is here to help. Contact us to get started. We look forward to partnering with you!