April 2005
Total personal income rises as employment activity rebounds
Employment is off to a strong start in Metro Denver, with a 2.5% increase in employment in the 11-county area for the first two months of 2005. The hiring pace is expected to increase in the second quarter of 2005. Job prospects in construction, durable goods manufacturing and education are expected to see strong growth this summer fueled by increasing demand for schools, hospitals and other services..
According to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for April 2005, economic conditions in Metro Denver continue to improve on an annualized basis, with 14 of the 18 economic indicators moving in a positive annual direction this month.
The unemployment rate in the seven-county Mmetro Denver area has remained at 5.4% for the past three months (Dec-Feb) indicating stable hiring even as more people once again enter the labor force. The total personal income in Colorado also rose to 5.5% in 2004 as employment activity rebounded.
Another positive indicator shows a successful holiday season which helped drive total retail sales in Metro Denver to a solid 7.9% increase in 2004, indicating consumer confidence is up.
“Consumers are growing increasingly confident that the recovery will be sustained, as evidence by strong growth in retail sales,” said Tom Clark, executive vice president of the Metro Denver EDC. “Employment growth is strengthening, but not to the degree that will spark new demand for large scale commercial projects through the rest of the year.”
Data from Costar Realty Information Inc. indicates a slowly improving office market in Metro Denver. Direct vacancies declined 0.2 percentage points to 14.8% during the first quarter of 2005. On the other hand, the industrial real estate market also slipped slightly in the first quarter with the direct vacancy rate rising to 8.3%. There are still minimal new commercial construction activity, although both office and flex construction activity is higher than the first quarter of 2004.
Finally, Colorado maintained its number three ranking for college educational attainment. The 2004 data from the Current Population Survey by the U.S. Census Bureau reveals that 35.5% of the adults in Colorado have a bachelor's degree or higher.
The Monthly Economic Summary provides a snapshot of metro area economic activity and its relation to regional and national economic trends.