April 2010
Signs of an improving labor market beginning to surface in Metro Denver
Signs of an improving labor market are slowly beginning to surface, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for April 2010.
Metro Denver employers added roughly 4,600 jobs between January and February, but the February gain was smaller than the increase reported for the month in prior years. Employers in professional and business services, education and health services, leisure and hospitality, other services, and government reported job gains between January and February.
"We haven’t seen a massive jump in job numbers, but indicators show that the jobs are coming," stated Tom Clark, executive vice president of the Metro Denver EDC. "In fact, economic indicators haven’t looked this good since October 2007."
Thirteen economic indicators for Metro Denver moved in a positive monthly direction in this report, compared to nine indicators in the prior report. Twelve indicators moved in a positive annual direction, compared to six indicators in the February report.
Demand for clean energy is helping to spur growth in the regional economy. Three solar energy companies with Metro Denver headquarters made major announcements in March including the Chevron Corporation, Thornton-based Ascent Solar Technologies, Inc. and Arvada-based PrimeStar Solar Inc.
March was also a month for major news in wind power. Denmark-based Aluwind Inc. – a manufacturer of aluminum wind turbine and tower components – announced plans to launch its U.S. operations in Castle Rock. Vestas announced a major turbine order for a Wisconsin wind farm, and Broomfield-based Renewable Energy Systems (RES) Americas announced the Cedar Point Wind Project – located in Lincoln and Elbert Counties – will include turbines, substations, and more than 40 miles of overhead transmission line. RES Americas will use Colorado-built Vestas wind turbines for the project, and Xcel Energy has agreed to purchase the wind farm’s generated power.
As Metro Denver’s existing wind power companies take on more projects, new companies are also forming. One such company, Boulder Wind Power, plans to hire up to 30 workers to staff the company’s Boulder headquarters. An engineer formerly with the National Renewable Energy Laboratory launched the company that will focus on design, development, and production of a direct-drive technology that could make wind turbines more reliable. A company official says a proof-of-concept model and prototype should be ready in two to three years.
The Manpower Employment Outlook Survey for the second quarter showed the nationwide percentage of employers planning to hire over the next three months rose to 16 percent from 12 percent in the prior survey. Survey data for the Denver-Aurora-Broomfield MSA show the percentage of employers planning to add jobs rose to 13 percent from eight percent in the prior quarter, and the percentage of employers planning layoffs declined to nine percent from 11 percent. While the survey data suggest employers remain generally cautious about adding jobs, improvements from previously-bleak outlooks are welcome.
Metro Denver also received recognition for overall job prospects. A recent analysis by Portfolio.com/bizjournals named Metro Denver as the nation’s 15th-best labor market for young adults, and Metro Denver ranked as the eighth-easiest market for all job seekers in the March edition of the JuJu Job Search Difficulty Index.
These signs all suggest Metro Denver’s labor market should firm in the coming months. These modest improvements have helped boost the region’s overall outlook.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.