Economists Predict Slow Recovery for Colorado Workforce After Policy-Driven Setbacks

By Bernadette Berdychowski | The Denver Gazette

Colorado faced weak job growth throughout 2025.

More than half of the 11 largest sectors are expected to have recorded job losses by the end of the year, according to the annual economic outlook from the Business Research Division at the University of Colorado Boulder, released Monday.

But 2026 is expected to see improvement, as economists forecast only three sectors will see job losses.

Preliminary estimates show 2025 had 0.4% growth. Next year, job growth could improve to 0.6%.

Colorado has been in a cycle of sluggish growth since 2024 that was exasperated this year by tariffs and federal cuts. The slowdown is largely driven by the professional and businesses sector, the second-largest employer in the state, which saw employment drop 5.8%.

Job losses also hit retail and transit (-2.6%), information (-2.4%), manufacturing (-1.4%), financial activities (-0.5%) and other services, such as religious and grant nonprofit work (0.3%).

In 2026, business and professional services and the information sectors are expected to continue on the trend. In addition,

economists expect the hospitality industry to slow down and see job losses.

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