Colorado employment is projected to expand over the next two quarters of 2016, though at a more modest pace, according to a University of Colorado Boulder report released today by Colorado Secretary of State Wayne Williams.
The quarterly indicators report, prepared by CU-Boulder’s Business Research Division at the Leeds School of Business, uses data from the secretary of state’s business registry to report correlations between the data and economic metrics.
The report notes a tight labor market that is leading to a talent shortage and is reflected in the state’s low unemployment rate of 2.9 percent, according to the most recent state data through March 2016 from the Bureau of Labor and Statistics.
Business formation rebounded in the first quarter of the year, reversing two consecutive quarters of decline. The state saw 29,680 businesses come online at the start of 2016, up from 23,306 in the fourth quarter of 2015.
A total of 104,235 new entities were created during the 12-month period ending in March of 2016, which is a .5 percent year-over-year increase.
“With small businesses being so important to Colorado’s economy, it is nice to see business startups grow once again after two declining quarters,” said Williams.
Existing entity renewals in the first quarter totaled 129,832, up from 113,849 last quarter and up 2.8 percent year-over-year. However, dissolution filings also increased to 6,892 in the first quarter from 6,770 last quarter.
The number of entities in good standing ticked up 5.1 percent year-over-year to a total of 600,617.
“The rebound in new entity filings is reassuring, following two quarters of decline,” said economist Richard Wobbekind, executive director of CU-Boulder’s Business Research Division. “This is consistent with what we’re seeing in employment growth, the low unemployment rate, and really, a Colorado economy that’s in a general state of good condition.”
Beyond Colorado, the value of the dollar and global growth are weighing on U.S. exports, said Wobbekind.
Visit the secretary of state’s website to view current and past reports or to sign up to receive reports by email.