Colorado business filings signal moderate job growth ahead
Business filings in Colorado decreased from the first to the second quarters, but remain higher than a year ago and continue to signal job growth in the state.
A total of 28,074 new businesses registered with the secretary of state’s office during the second quarter. That’s a 5.4 percent decrease from the first quarter, but a 7.6 percent increase over the second quarter of last year.
Meanwhile, 119,132 existing businesses renewed filings during the second quarter of 2016. That’s a decline of 8.2 percent from the first quarter, but a gain of 9.5 percent over the second quarter of 2015. Limited liability companies drove year-over-year growth.
“Business formation continues to accelerate in Colorado,” said Wayne Williams, secretary of state.
The research division at the Leeds School of Business at the University of Colorado in Boulder prepares quarterly reports based on information from the secretary of state’s office.
Through May, Colorado has experienced year-over-year job growth in 10 out of 11 industry sectors. As of June, nonfarm payrolls had increased 61,500 over the past year even as the state unemployment rate slipped two-tenths of a percent.
Employment is expected to continue growing in the third and fourth quarters, although at a slower pace.
“Even though the state economy is showing a more modest growth rate, we are encouraging by both the year-over-year job growth and the performance of 10 of the 11 industry sectors,” said Richard Wobbekind, executive director of the division.
For the year ending in June, 106,225 new businesses registered with the secretary of state’s office, a 1 percent increase over the previous 12-month period. The second quarter ended with 610,047 entities in good standing in the business registry, a 5.1 percent increase over the prior year.