Colorado added more new business filings in 2017, indicating job growth could follow in the near term according to a CU Boulder report released today by Colorado Secretary of State Wayne W. 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 several metrics, including new business filings, business renewals, construction and the unemployment rate, both in Colorado and nationally.
The state added 117,648 new business filings in 2017. The final three months saw a 9.4 percent increase over the same period in 2016, but a typical seasonal decline of 4.5 percent from the quarter before.
"Year-over-year increases in new entity filings and existing entity renewals have me very optimistic that Colorado’s steady economic growth will continue in 2018," Secretary Williams said. "I expect 2018 to be a good year for Colorado businesses and consumers."
Existing entity filings rose 5.2 percent in 2017 to 125,480. Entities in good standing reached a state record of 674,979.
“Colorado exhibited stronger wage growth through the first half of 2017,” said Richard Wobbekind, Executive Director of the Business Research Division. “This is something we expect in tight labor markets—and Colorado is certainly in a tight labor market with a sub-three-percent unemployment rate.”
Total wages rose in the second quarter of 2017, increasing 6.2 percent year-over-year. That is the most recent available data from the Bureau of Labor Statistics. Wages per employee in the second quarter increased 3.9 percent across Colorado.
The report finds Colorado’s economy is fundamentally strong, growing 3.6 percent year-over-year in Q2 2017, with continued job growth. November saw approximately 54,800 jobs added compared to the same month the year before. Residential construction posted 32.4 percent growth year-over-year in November. Home prices grew at the sixth-fastest pace nationally according to the Q2 Federal Housing Finance Agency All Transactions Index.
Colorado business leaders’ confidence increased heading into the first six months of 2018, with a large increase in national expectations. Overall, panelists remain bullish on sales, profits, hiring and capital expenditures.