Something to Think About… 
Colorado’s Job Market Isn’t Broken… It’s Changing 

From where I sit, one thing is clear: our job market in Colorado is not failing as some headlines may say, it’s recalibrating.  Things are changing, though it’s not doom and gloom, as hiring hasn’t stopped.  Hiring has slowed and for better or worse, it’s become far more intentional.

What the data says… 

Colorado is still adding jobs, just not at the pace many employers grew used to. State economic forecasts project about 0.6% job growth in 2026, or roughly 17,500 new jobs statewide, according to Colorado’s latest economic outlook. 

That’s positive growth; it’s just slower.   

At the same time, Colorado’s unemployment rate remains relatively low compared at 3.9% (November of 2025) to historical averages, and lower than the national rate at 4.6%. In practical terms, yes, hiring has slowed, but there isn’t a large pool of idle workers waiting to re-enter the workforce either. 

For Colorado employers, this creates a very specific dynamic: 

• Slower hiring growth 

• Continued competition for capable employees 

• Higher expectations on both sides of the hiring table 

That combination simply changes how hiring works, it doesn’t stop it. 

What I’m seeing across Colorado employers… 

Hiring has higher standards.
With slower Colorado job growth projected for 2026, each hire carries more weight. That shows up in real conversations: fewer rushed decisions, more emphasis on capability, adaptability, and long-term fit.  This aspect of hiring has possibly never been more important. 

Alignment is harder.
Many employers are receiving a high volume of resumes, though they are having less candidates that match the open opportunity. Resumes and cover letters are written by Ai, which isn’t necessarily bad, but it adds another level of complexity when hiring.  The challenge isn’t a lack of effort on anyone’s part, it’s alignment between employer expectations and what candidates are actually prepared to step into. 

Strong employees still move quickly.
Even in a slower-growth environment, capable workers don’t linger in uncertainty. With unemployment remaining relatively low in Colorado, high performers have options. When roles feel unclear or expectations shift midstream with poor communication, they will move.   

This moment is about clarity. 

One of the biggest risks right now is misreading what’s happening. 

Colorado’s labor market isn’t signaling a downturn. It signals the need for clarity. 

Clarity on how roles are defined, on how expectations are communicated, and how hiring decisions are made. 

The old playbook of posting a job, hire quickly, figure it out later, isn’t for this new era of business.   

Something to think about. 

If hiring feels harder right now, it doesn’t mean Colorado is “out of workers”, and it doesn’t mean your business is behind.  That’s very important to understand, so you’re not hard on yourself. 

The companies that adjust to this new reality will come out of it more stable, more aligned, and better positioned for what comes next. 

From what I’m seeing across Colorado, this isn’t something to fear, it’s a big opportunity.  

About the Author
Kevin Welch is the Founder and CEO of Journey Payroll & HR, the largest privately owned payroll company in Colorado, founded in 2010. He writes about workforce trends, payroll, HR compliance, and leadership from the perspective of working alongside Colorado employers every day. 🔗 LinkedIn: https://www.linkedin.com/in/kevinwelchjourney/