Denver Labor Market Shows Signs of Moderation in October 2024
The Denver labor market in October 2024 is starting to show signs of easing after a period of intense growth. While the unemployment rate has slightly increased, the overall job market remains strong compared to national averages.
Wage growth is also slowing, reflecting a shift in labor demand as businesses take a more cautious approach to hiring and compensation increases. Despite these changes, the metro area continues to be one of the top-performing labor markets in the United States, driven by strong performance in key industries such as technology, healthcare, and professional services. Below are the key insights and data for Denver’s labor market.
Unemployment Rate in Denver
As of October 2024, Denver’s unemployment rate stands at 3.4%, up from 3.1% in September 2024. This increase suggests a slight loosening in the labor market, yet the rate remains below the national average of 4.0%. This indicates that while hiring has slowed, there is still high employment in the region.
Job Growth and Employment Trends
Denver’s job growth has moderated, with a 1.8% increase year-over-year through 2023, down from 4.3% in 2022. The technology, healthcare, and professional services sectors continue to drive employment gains, while the manufacturing sector has experienced a slowdown in hiring. This trend aligns with the broader Rocky Mountain region’s employment conditions.
Wage and Salary Trends
Wage growth in Denver has slowed significantly, with annual hourly earnings increasing by 4.1% in 2023 compared to 8.1% in 2022. Despite the slowdown, wage growth remains higher than the national average, reflecting continued strong demand for skilled labor. The median starting pay for new hires in the Denver metro area is currently around $19 an hour.
Labor Market Tightness or Slack
Labor market tightness is easing, with fewer businesses planning to add staff compared to last year. Most employers are maintaining current staffing levels rather than expanding. Although demand for skilled positions remains robust, the overall hiring pressure has reduced, suggesting more stable conditions heading into 2024.
Industry-Specific Data
- Technology: The technology sector remains a key driver of job creation, though the pace of hiring has slowed in recent months. Demand for software developers and cybersecurity experts remains high.
- Healthcare: Healthcare employment grew by 2.9% over the past year due to increased demand for medical professionals, such as nurses and medical assistants.
- Professional Services: Professional services, especially finance and accounting, continue to see growth. However, roles in legal and consulting services are showing signs of stabilizing.
Forecast and Economic Outlook
The labor market in Denver is expected to continue its cooling trend into early 2024, with slower job growth and wage increases. Consumer confidence remains strong, and the real estate market is anticipated to stabilize, contributing to a balanced economic environment in the region.
Labor Force Participation Rate
Denver’s labor force participation rate remains stable at 67%, indicating strong engagement in the job market. This rate is higher than the national average, suggesting that a larger portion of the working-age population is either employed or actively seeking employment.
Business and Employer Sentiment
Business sentiment in Denver is cautiously optimistic, with most companies planning to maintain current staffing levels rather than expand. Concerns about economic uncertainty have led employers to take a more conservative approach to hiring and compensation.
Workforce Demographics and Skills
The Denver labor market is characterized by a young and educated workforce, with a high percentage holding bachelor’s degrees or higher. While there is strong availability of talent in fields such as engineering and IT, gaps in skilled trades and manufacturing persist, making targeted workforce development initiatives essential.t it could also sustain inflationary trends in the broader economy.
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