Chris Akers, Labor Market InformationColorado Department of Labor & EmploymentFebruary 19, 2014

Colorado & Denver

Economic Overview

Today’s Agenda• Overview of the Economy

► National► Colorado► Denver

· Denver’s Strength’s · Denver’s Residential Housing

Permits

Source: Haver Analytics & The Conference Board

Economic Outlook: 2014 • U.S. Gross Domestic Product (GDP)

• 2014 forecast = 3.1%• 2013 = 1.9%

• U.S. Consumer Price Index (CPI)• 2014 inflation forecast = 1.7%• 2013 = 1.5%, lowest in 4 years

• Uncertainty reduced considerably with passage of budget & debt ceiling resolution

Nonfarm Payroll Job Growth U.S. and Colorado

Source: Labor Market Information, Current Employment Statistics Program

-6.00%-4.00%-2.00%0.00%2.00%4.00%

Colorado U.S.

Source: Labor Market Statistics, Current Employment Statistics Program

Super Sector Industries 2013 Annual Average CO vs. U.S.

To

tal N

on

farm

Min

ing

& L

og

gin

g

Co

nst

ruct

ion

Man

ufa

ctu

rin

g

Tra

de,

Tra

ns.

& U

tilit

ies

Info

rmat

ion

Fin

anci

al A

ctiv

itie

s

Pro

fess

ion

al &

Bu

sin

ess

Svc

s

Ed

& H

ealt

h S

vcs

Lei

sure

& H

osp

ital

ity

Oth

er S

ervi

ces

Go

vern

men

t

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1.7% 2.

4%

3.2%

0.7%

1.6%

0.3%

1.2%

3.5%

2.0%

3.4%

0.6% -0

.3%2.

4%

-0.8

%

6.2%

0.7%

1.5%

-1.3

% -0.5

%

4.4%

3.0%

4.1%

1.4%

1.3%

U.S. Colorado

Source: Labor Market Statistics, Local Area Unemployment Statistics Program

MSA Unemployment Rates Dec ’13Not Seasonally Adjusted

0

1

2

3

4

5

6

7

8

6.5

5.9 5.8

4.4

7.2

5.4

6.2

3.5

5.65.4

Un

em

plo

ym

en

t R

ate

%

Denver MSA Strengths

Source: Labor Market Information, Current Employment Statistics Program

• 5.8% Unemployment Rate = lowest since Nov. 2008• 70% of statewide job growth centered in Denver:

+30,400 jobs from Dec 2012 – Dec 2013• Rising home prices and influx of young, well-

educated adults = increased construction activity• Diverse industry base:

transportation cross-roads (I-25 & I-70 + DIA) and improvements (light rail expansion + Union Station)

large technology companies (Arrow Electronics, Lockheed Martin, & Sun Microsystems)

Source: bureau of the Census / Haver Analytics

Denver MSA Housing Permits

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

30000

35000

Single Family Multi Family

Questions