April 2006
Employment expansion coupled with personal income growth positive indicators
All systems are go for a complete economic recovery in Metro Denver, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for April 2006.
Revised annual employment statistics reveal that Metro Denver added 26,100 net new jobs in 2005, a 2% growth rate. This was an upward revision from data released throughout 2005 that indicated that the Metro Denver region would add only 24,800 jobs, a 1.9% increase.
Of the 61,200 jobs that were lost in Metro Denver during the recession of 2002 and 2003, 36,800 positions were added back in 2004 and 2005. Current forecasts for the year reveal that Metro Denver will add nearly 28,000 jobs in 2006, representing a full recovery from the recession.
Per capita personal income in Colorado rose faster than the nation in 2005. The Bureau of Economic Analysis reported a 5.1% increase in per capita personal income in Colorado to $37,946 compared to the 4.6% increase at the national level to $34,586. Colorado boasts the eighth highest per capita personal income in the U.S., up from ninth in 2004.
“The revised employment figures for last year paint an economic picture that is much better than we expected," said Tom Clark, executive vice president of the Metro Denver EDC. “This news, coupled with increased personal income, point out that all systems are go for a full economic recovery."
For the month, 10 of the 18 indicators moved in a positive direction, down from 11 indicators last month. Annualized activity improved with 16 economic variables posting positive changes for the year, up from 15 last month. The two variables which did not improve – foreclosures and residential building permits – reflect the softness of the residential real estate market.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.