Colorado 2021 Economic Forecast: Job Gains, But No Full Recovery

Thousands of new jobs will be created in 2021 in Colorado, but not enough positions to make up for the losses caused by the pandemic, according to the latest Colorado Business Economic Outlook.

Colorado is projected to regain 40,500 jobs in the new year, according to the report, which was compiled by the University of Colorado Boulder's Leeds Business Research Division. Unfortunately, the projected job gains are fewer than a third of the state’s estimated 2020 job losses.

Analysts broke down 13 business sectors and seven regions around the state.

“It will continue to be a bumpy road as long as the economy goes through rolling lockdowns,” said Richard Wobbekind, Leeds Senior Economist.

“The outlook for 2021 hinges on a vaccine’s ability to reopen the economy, particularly in the service sectors. Our expectation is a stronger second half of the year.”

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Nine of the state’s 11 industries are expected to gain jobs.; however, Colorado will likely fall out of the top 10 states for employment growth in 2020 and 2021, Wobbekind said.

The industries that have been the hardest hit by the pandemic — leisure, hospitality, trade, transportation and utilities — are projected to grow most in 2021, according to the report. Leisure and hospitality are expected to add 19,200 jobs. Trade, transportation and utilities are predicted to gain 14,700 jobs.

The government sector is expected to lose the most jobs — 6,900. The information sector is projected to lose 1,100 jobs.

Work-from-home changes spurred by the pandemic will continue to impact commercial real estate, transportation and retail sales, according to the report.

Colorado’s population growth will be the slowest since 2003, adding an estimated 53,300 people, according to the State Demography Office. Just 35,100 new Colorado transplants will come from net in-migration.

The report was presented virtually to state business leaders at the 56th annual Colorado Business Economic Outlook Forum Monday.

>> Read the full Colorado Business Economic Outlook here.