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Ospb has revised its labor market forecast downward for both colorado and the u.s., projecting slower job growth and higher unemployment through 2027, largely due to heightened economic uncertainty and the impact that will likely have on labor demand. Wage growth for the mountain region, which includes colorado, is at 5.9 percent compared to 5.2 percent nationwide. The annual colorado business economic outlook provides professionals across nearly every industry in the state with a forecast of colorado’s economy by sector
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Each december, the center presents its forecast for the following year during its annual colorado business economic outlook forum. Colorado’s unemployment rate of 3.7 percent remains lower than the national average of 4 percent Implications of the forecast for the state's general fund budget and spending limit are described in the report's highlights and executive summary sections
The report is based on current law, legislation passed by the general assembly affecting the forecast is described throughout the report.
Both forecasts showed a downward revision in economic growth for this year and 2026, with ospb attributing the decline to elevated uncertainty around tariffs, which, the economists said, will affect spending and investments. “while this forecast shows us returning to more normal budget conditions, we will work hard to protect funding for crucial services our communities depend on,” rep Emily sirota, a denver democrat, said in a statement. Our vision for 2026 requires us to build a framework now that not only creates and preserves affordability in our state but also protects our climate, environment and rural spaces, all while considering the unique context of colorado’s different regions and demographic trends.
Should the economy grow at rates consistent with the trends in employment growth and the unemployment rate, the budget hole gets larger, on the order of $2.8 billion for fiscal years 2026 and 2027 The relatively optimistic revenue growth figures suggest nothing about the downside risk. A tailwind to economic growth is h.r 1, which should stoke additional investments given the tax incentives, all else held equal
However, tariff and immigration policy headwinds are expected to offset those benefits in the near term.
In 2026, the economy is expected to grow by 1.9 percent, up from 1.8 percent in the previous forecast, as pce growth strengthens and investment contributions to gdp growth stabilize. Colorado’s economy continues to grow and outperform the nation’s economy
