Wednesday, June 8, 2011

State of Working Colorado: Unemployment rate and the labor force – Coming back in

Colorado’s unemployment rate increase in 2010 was not all bad news. In fact, a look at the state’s labor force alongside its unemployment rate reveals increased labor force participation was behind much of the recent unemployment rate increase. Since laid-off workers are counted only as "in the labor force" and "unemployed" if they are actively looking for work, more workers resuming the job hunt can actually increase the unemployment rate. While the state’s economy did not generate enough jobs for full employment in 2010, it did do well enough to bring workers back into the economy after they left en masse in 2009. Colorado stands in contrast to the national economy, which saw a decrease in its unemployment rate at the end of 2010 as it shed workers from the labor force.

For more insights, including detailed policy recommendations for enhancing economic security for all Coloradans, check out the State of Working Colorado 2010.

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