New Colorado business filings continued to post year-over-year growth in the third quarter of 2017, raising future employment expectations for the end of the year, according to a University of Colorado Boulder report released today by Colorado Secretary of State Wayne Williams.
The report—prepared by the Business Research Division at the Leeds School of Business using data from the Secretary of State’s business registry—looks at a variety of metrics, including new business filings, business renewals, construction and the unemployment rate, both in Colorado and nationally.
A total of 28,372 new business filings were recorded in the state during Q3, an increase of 5.1 percent over the same period last year. The increase bodes well for continued job growth through the rest of 2017, but that growth is expected to slow in the first quarter of 2018.
"In the short term, Colorado is positioned very well with employment levels projected to increase over the next six months," said Colorado Secretary of State Wayne Williams. "Our economy remains fundamentally strong."
Existing business entity renewals increased to 127,228 during Q3 while entities in good standing reached 656,144, an increase of 5.9 percent year-over-year and a new record for Colorado.
“While Colorado employment growth will continue to be positive and stronger than the nation, growth in 2018 will be more subdued than in 2017,” said Richard Wobbekind, Executive Director of the Business Research Division. “The low unemployment rate, coupled with slow growth in the prime working-age population, will constrain potential growth.”
Residential construction is also expected to have a strong finish for the year. As of August 2017, residential building permits for 2017 increased 19.6 percent year-over-year with increases in both single-family and multi-family permits.
Overall, the report finds Colorado to be in fundamentally sound economic health. GDP, employment, and wages all increased year-over-year while jobless claims decreased. The state’s unemployment rate remains historically low at just 2.4 percent, far below the national rate of 4.2 percent for the period.
Colorado business leaders’ confidence decreased but remained in positive territory ahead of Q4 2017 and Q1 2018. Although sales and profit expectations have decreased for two consecutive quarters, the state remains comfortably in expansion territory.
To read the full report, visit the Secretary of State’s website.