Phil Castle, Business Times

The monthly unemployment rate has retreated to its lowest level in three years as Mesa County continues to recover from the effects of the COVID-19 pandemic and related restrictions.

As efforts proceed to address labor shortages and bridge skill gaps, the outlook for 2023 remains heartening, said Lindsay Bullock, director of the Mesa County Workforce Center in Grand Junction. “I think, all in all, it’s encouraging to see where we’re going.”

The seasonally unadjusted unemployment rate fell a half point to 3.1 percent in December, according to the latest estimates from the Colorado Department of Labor and Employment. That’s the lowest level since the rate also stood at 3.1 percent in December 2019, before the onset of the pandemic in the United States. At this time last year, the rate was higher at 3.9 percent.

The jobless rate jumped to 4.5 percent in January and February 2022, but declined in seven out of the 10 subsequent months.

Between November and December, Mesa County payrolls decreased 601 to 75,581. But the number of people counted among those unsuccessfully looking for work also decreased —  381 to 2,455. The labor force, which includes the employed and unemployed, shrank 982 to 78,036.

Over the past year, payrolls increased 883 — nearly 1.2 percent. The ranks of the unemployed decreased 593. The labor force grew 290.

Bullock said the number of job orders posted at the Mesa County Workforce Center continues to decline compared to last year. For December, 589 job orders were posted. That’s down more than 40 percent from the same month last year. For 2022, 9,292 orders were posted. That’s down more than 21 percent from 2021.

The 2022 numbers remained higher, however, than those for the years before the pandemic, she said.

While job orders offer a measure of labor demand, they decrease as employers fill openings, Bullock said.

Labor shortages persist for several occupations, she said, including those in health care, food service and retail.

The monthly jobless rate traditionally spikes in January in Mesa County to the highest level of the year following layoffs after the holidays and less hiring in jobs affected by winter weather. January labor estimates aren’t scheduled for release until March 13 because of annual revisions to 2022 information.

Bullock said she expects unemployment rates to remain low in 2023 as the labor market and economy recover further and efforts continue to recruit and retain more employees and bridge skill gaps between applicants and job requirements. “I think in 2023 we’re going to continue to see that job recovery.”

Seasonally unadjusted jobless rates also declined in neighboring Western Colorado counties in December — six-tenths of a point to 3.4 percent in Rio Blanco County and 2.6 percent in Garfield County, a half point to 3.3 percent in Delta County and three-tenths of a point to 2.9 percent in Montrose County.

The statewide seasonally adjusted unemployment rate retreated two-tenths of a point to 3.3 percent as nonfarm payrolls increased 8,600 between November and December. Those numbers are based on the results of separate surveys of households and businesses.

For 2022, nonfarm payrolls increased 104,700 — an increase of 3.7 percent — with the biggest private sector gains in the professional and business services, leisure and hospitality and educational and health services sectors.

Over the past 32 months, Colorado has added 466,400 nonfarm payroll jobs, more than offsetting the 374,500 jobs lost in March and April 2020 at the onset of the pandemic.

Over the past year, the average workweek for Colorado employees on private, nonfarm payrolls shortened two-tenths of an hour to 32.9 hours. Average hourly earnings increased $2.16 to $35.52.