There are more than 200 job openings at UCHealth hospitals and facilities in the Pikes Peak region, according to a quick search on job board Indeed.
That’s not unusual to have hundreds of openings since UCHealth, one of the largest nonmilitary employers in the region, has more than 7,000 employees in the Colorado Springs area — and that doesn’t include Pueblo, said Cary Vogrin, spokesperson for UCHealth in Colorado Springs. But that said, it has fewer job openings than a year ago.
“In fact, there are 52% fewer jobs open in this region in May 2024 than in May 2023,” Vogrin said in an email. “This is specific to our hospitals in Teller and El Paso counties, and we attribute the lower number to turnover stabilization and opportunities for upward career mobility through UCHealth’s Ascend Career Program, in which employees can continue their education free of charge for certain clinical programs.”
Retaining workers by giving them reasons to stick around may be a reason why the region is seeing some job-growth sluggishness. About 100 jobs were added to the El Paso and Teller counties payrolls in March, which is below the pre-pandemic monthly average of 588 in 2018 to 2019 and well below 900 average per month last year, according to the Bureau of Labor Statistics and an analysis by the University of Colorado Colorado Springs Economic Forum. January and February were worse with monthly declines of 400 and 500 jobs, respectively.
Meanwhile, the area’s unemployment rate was up nearly a full percentage point in March, at 4% compared with a year earlier at 3.1%.
Colorado Springs has a lot going for it, with multiple announcements of corporate expansions and new jobs so far this year. But economic development is just one part of the local economy. The delayed pain of higher interest rates may be impacting the region more so than the rest of the state or nation, theorized Bill Craighead, executive director of UCCS Economic Forum.
“With our high growth and population turnover, construction and real estate are more important for the local economy and nationwide, so I think we’re more interest-sensitive than many other places,” Craighead said.
It’s a popular city for newcomers, largely because of the military operations that have people coming and going. About 5.9% of the city’s population is in the armed forces. That’s led to stats that show Colorado Springs has nearly twice the rate of newcomers moving from out-of-state compared with Denver. According to the U.S. Census, 6.6% of the metro Colorado Springs population lived in another state a year ago, compared with 3.5% in metro Denver.
Craighead also looked at local sales tax collections and noticed they’ve been sluggish, partly driven by lower sales in furniture, appliances and electronics category, or “things that people buy when they’re moving into a new house,” he said.
“Our local economy is going to be more sensitive to interest rates than a lot of other places because we have so much real estate activity,” he said. “It’s not just growth, but you have really high population turnover. If you look at the share of real estate agents in our local labor force, it’s three times the national rate.”
Still, even a 4% unemployment rate is considered low. And being down several hundred jobs in one month pales in comparison to how many people are employed in Colorado Springs. That came in at around 365,147 in March, which is about 2,400 more than a year ago, according to BLS data.
“The unemployment rate is minuscule and is an advantage for our region,” Johnna Reeder Kleymeyer, president and CEO of Colorado Springs Chamber and EDC, said in an email. “It shows that we have available talent to fill new and existing jobs. Companies are less likely to locate to a region with full employment.”
And then there’s the newcomers
One newcomer is Tim Vanderhoof, who joined the Colorado Springs Chamber as its vice president of economic development. He moved to the city from Florida eight months ago.
He’s only been around for a few months but he’s gotten up to speed with what happened last year and so far this year. And while he pointed out multiple times that the big economic wins are just a small part of the jobs created in the region, the economic-development activity hasn’t slowed one bit.
“We have not seen people pull back,” Vanderhoof said. “We’re seeing just the opposite. Our activity level is picking up. I believe last year, we closed — meaning we engaged, we helped and the project was won — it was nine projects. We are on track this year to eclipse that and you know, I always say the data doesn’t lie. It’s in the numbers. And we are seeing a good, strong but sustainable uptick.”
Since January, several companies have announced plans to add more than a combined 1,100 jobs in Colorado Springs. Some recent announcements:
But a lot of the company expansions have long-term job-growth goals of five to 10 years. Getting more of those higher-paying jobs to town attracts folks leaving the military who may already have government clearance or an interest in defense, cybersecurity and aerospace, for which Colorado Springs is a hub.
“The jobs are forecasted. No one is creating 500 jobs overnight. It’s not really possible nor sustainable,” Vanderhoof said. “Most of these larger job creation numbers, the 100, the 200 and up to 500 are typically going to be over anywhere from five to 10 years, which we want because that’s smart and calibrated growth that an employer can maintain. They’re bringing in more revenue and they’re producing more so they can hire more so that it’s sustainable.”
Data does get revised though. Last year, revisions pushed payroll gains in the Colorado Springs metro area to an average of 900 new jobs per month. The declines earlier this year could see some revision later on and so Craighead at UCCS said he’s waiting for the April numbers to come out before he gets too worried.
“I don’t want to get too concerned yet based on the three months of data, but payroll growth was definitely weak. But if it comes in weak again, then that’s confirmation that we are having a bit of a slowdown,” Craighead said. “But even by historical standards, 4% is still a pretty low unemployment rate.”
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Sun economy stories you may have missed
➔ Colorado Democrats announce major deal with governor to cut income taxes, redirect TABOR refunds to low-income families. The income tax rate is expected to drop for 2024 to 4.25% from 4.4%. The state sales tax rate will drop, too. >> Read story
➔ $20,000 offered to help Grand County ranchers fend off wolves that are killing calves. The Colorado agriculture department hopes nonlethal deterrents, including range riders breaking up hunting patterns, will help. Ranchers have their doubts. >> Read story
➔ Colorado owes taxpayers $34M in refunds it never sent. That means trouble for the state budget. Lawmakers have just days left in the 2024 legislative session to correct the error, which was uncovered by a state audit. >> Read story
➔ A billionaire’s fence is the latest fault line in a 150-year-old San Luis Valley land war. Tensions are high along the perimeter of Cielo Vista Ranch, as landowner William Harrison and those with rights to use the land head toward another court battle over the fence. >> Read story
➔ Durango’s hotel-to-housing project financing is a first in Colorado. The Residences at Durango will provide below-market rentals for people earning no more than 60% of the city’s $76,177 median household income. >> Read story
➔ Colorado’s transportation fees on gasoline, deliveries and rideshare trips can stand, Denver judge rules. A group of conservative activists sued the state and governor in 2022 to try to invalidate the fees, which are slated to generate billions in revenue for road and transit projects in their first decade. >> Read story
Other working bits
➔ Companies warn of layoffs. It’s still a dicey time for some professions and companies in Colorado, with a slight uptick in the number of companies warning the state that layoffs and closures are looming. In the past week, here are the companies that filed a Worker Adjustment and Retraining Notification Act with the state’s labor department.
➔ So long, Affordable Connectivity Program. The federal program providing subsidies to low-income households to pay for broadband service ended in April. If you’re in Colorado and still need financial assistance, the national Lifeline Program still provides up to $9.25 per month for phone or internet service (and up to $34.25 for those living on Tribal lands). Some internet providers also offer discounts for low-income users, such as Comcast’s Internet Essentials for $9.95/month. The Colorado Broadband Office, which is in the process of doling out millions of dollars to improve broadband in the state, is also working on alternatives and requiring internet providers awarded grants to offer a low-income option. >> Resources
➔ May is Mental Health Awareness month. This reminder comes from Denver-based PCL Construction Enterprises, which announced it’s integrating Lyra Health mental health services to its employee benefits program. The construction industry has the second-highest suicide rate among major industries, according to the Centers for Disease Control and Prevention, so recognizing the issue with employees “is vital to our business and a critical concern within our industry,” Deron Brown, PCL’s president and chief operating officer, U.S. Operations, said in a news release. >> See Mental Health Colorado for resources
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Thanks for sticking with me for this week’s report. Remember to check out The Sun’s daily coverage online. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. ~ tamara
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