October 2006
Metro Denver employment ticks upward
Metro Denver’s employment ticks upwards after another month of varied economic conditions, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for October 2006.
Employment in Metro Denver grew in August by 1,000 jobs, according to preliminary data released by the Colorado Department of Labor and Employment. Year-to-date employment in Metro Denver is 2% ahead of 2005 employment levels compared to a 2.2% increase statewide and a 1.4% increase nationally. Total employment in Metro Denver reached 1,381,900 jobs in August.
“Metro Denver’s economy continues in a sustained growth mode. While consumers remain cautious, they are still spending at strong, steady levels, which is very good news for our local and state government treasuries,” said Tom Clark, executive vice president of the Metro Denver EDC. “We will, however, continue to monitor the region’s foreclosure rates, which is impacting new home construction. We do expect the foreclosure tide to turn in 2007.”
The prospects for high-tech job growth are above average in Metro Denver and the Mountain States region, according to Robert Half Technology, who conducted the survey. About 15% of CIOs in Metro Denver plan to hire tech workers in the fourth quarter of 2006 and only 2% plan to cut jobs, producing a 13% net figure. The survey notes that help-desk professionals, system administrators, dot-net developers, and business intelligence gurus are the most in-demand tech jobs in Metro Denver.
Companies expanding in the Metro Denver area include the Northrup Grumman Corp. which broke ground on a 75,000-square-foot office building in Aurora in September. The new facility will accommodate 300 employees for the growing company, which plans to add 200 positions in the next two years.
Frontier Airlines is adding 10 Bombardier Q400 turboprop planes to its fleet to serve 18 new destinations in the Rocky Mountain region that are within a 650-mile radius of Denver. The 74-seat planes will allow Frontier to tap into markets like Aspen, Jackson Hole, and Durango. Between 300 and 400 jobs will be created by year-end 2007 with Frontier Express service expected to begin in summer 2007.
Forbes magazine ranked Colorado as the fifth best state in the nation for business based on six major categories, including growth prospects and labor, where Colorado ranked first and second, respectively. As indicated by Forbes, prospects in Colorado remain sound despite the fact that the general consensus is that economic growth is slowing across the country. While some economists are expressing concern about a pending U.S. recession, others expect that this slowdown will be tempered by modest job gains and continued consumer activity.
The most recent monthly economic data for Metro Denver reveals that 10 of the 18 indicators moved in a positive direction for the month, up from nine last month. Annualized activity remained relatively constant with 15 economic variables posting positive changes for the year, down from 16 indicators last month. The trouble spots in Metro Denver continue to center on the residential housing market with declining home sales, rising foreclosures, and decreased construction activity.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends