May 2006
Seventeen economic variables post positive changes for the year
Promising economic news abounds in a variety of key economic indicators, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for May 2006.
Despite the loss of 2,500 tech jobs in 2004, Colorado ranks first in the concentration of high-tech workers for the seventh consecutive year according to the AeA, formerly known as the American Electronics Association.
Colorado’s concentration of 88.72 high-tech workers per 1,000 private sector workers is much stronger than the national average of 51.06 high-tech workers per 1,000. Colorado high tech workers are the eighth highest-paid in the nation, earning an average annual salary of $74,603. California workers are paid the highest wages in nation, earning an average annual salary of $90,554.
First quarter 2006 employment in Metro Denver is up 2.2% compared to first quarter 2005 employment levels. A closer look reveals employment in the Denver-Aurora MSA is ahead 2.3% through March, compared to a 1.4% increase for the Boulder-Longmont MSA. Statewide employment levels are 2.3% higher over the same time period, while the U.S. is reporting only a 1.5% year-to-date gain.
The industry sectors reporting the most robust gains in percentage terms through the first three months of the year are the Natural Resources & Construction (+7%), Professional & Business Services (+3%), and the Education & Health Services (+2.5%) sectors.
In addition, the hiring pace in Metro Denver will strengthen in the second quarter of 2006, according to the latest Manpower Employment Outlook Survey. About 38% of the companies interviewed plan to hire more employees in the second quarter, the strongest level since first quarter 2001.
“This month, we are fortunate to report that a large majority of our economic news is good news," said Tom Clark, executive vice president of the Metro Denver EDC. “We are highly encouraged in many fronts, including our employment numbers, traffic and growth at DIA, and steady improvement in the commercial real estate market."
The number of indicators moving in a positive direction in the May report remained constant at 10 out of 18. Annualized activity improved with 17 economic variables posting positive changes for the year, up from 16 last month. The only variable which did not improve was foreclosures.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.