Top Output Categories for Colorado

The following list identifies the top output categories for Colorado. The list has been extracted from an IMPLAN database, This database divides output and employment  into  440 categories.

IMPLAN is an economic analysis tool that uses input-output analysis in combination with regional specific Social Accounting Matrices and Multiplier Models.

This list provides insight into the industries that drive the Colorado economy. As can be seen finance is a major contributor to the state’s output. Other key categories are food services, extractive industries, construction, government, health care, and advanced technology.

Top Output Categories for Colorado Based on IMPLAN Data

Rank Industry Code Description Output Percent Cumulative Percent
1 360 Real estate establishments $25,472,296,875 5.2% 5.2%
2 361 Imputed rental activity for owner-occupied dwellings $22,888,701,172 4.7% 9.9%
3 319 Wholesale trade businesses $22,869,310,547 4.7% 14.6%
4 351 Telecommunications $20,428,070,313 4.2% 18.8%
5 413 Food services and drinking places $12,926,014,648 2.6% 21.4%
6 438 * Employment and payroll only (state & local govt, education) $11,658,043,945 2.4% 23.8%
7 354 Monetary authorities and depository credit intermediation activities $11,587,137,695 2.4% 26.2%
8 20 Extraction of oil and natural gas $11,270,791,992 2.3% 28.5%
9 356 Securities, commodity contracts, investments, and related activities $10,981,884,766 2.2% 30.7%
10 394 Offices of physicians, dentists, and other health practitioners $9,923,915,039 2.0% 32.8%
11 440 * Employment and payroll only (federal govt, military) $9,475,095,703 1.9% 34.7%
12 381 Management of companies and enterprises $9,202,613,281 1.9% 36.6%
13 437 * Employment and payroll only (state & local govt, non-education) $9,006,702,148 1.8% 38.4%
14 357 Insurance carriers $8,479,899,414 1.7% 40.2%
15 36 Construction of other new nonresidential structures $8,137,076,660 1.7% 41.8%
16 397 Private hospitals $7,912,281,250 1.6% 43.5%
17 369 Architectural, engineering, and related services $7,906,128,906 1.6% 45.1%
18 345 Software publishers $7,026,037,598 1.4% 46.5%
19 31 Electric power generation, transmission, and distribution $5,340,330,078 1.1% 47.6%
20 366 Lessors of nonfinancial intangible assets $5,337,109,375 1.1% 48.7%
21 439 * Employment and payroll only (federal govt, non-military) $5,274,785,156 1.1% 49.8%
22 371 Custom computer programming services $5,234,539,063 1.1% 50.9%
23 359 Funds, trusts, and other financial vehicles $5,130,132,813 1.1% 51.9%
24 115 Petroleum refineries $4,738,690,430 1.0% 52.9%
25 367 Legal services $4,462,339,844 0.9% 53.8%
Other $225,686,144,106 46.2% 100.0%

Total output for the model was $488,356,072,817 and employment was 3,235,493. These 25 categories account for 46.4% of employment and 53.8% of output for the state.

Gap between U.S. and Colorado Unemployment Widens

The Colorado economy is a lot like the final two weeks of the 2010 Colorado Rockies baseball season – very ugly.

On a positive note, the word on the street is that both are going to be better in the near term (despite at opening day loss in extra innings).

On March 25, the Colorado Office of Labor Market Information (LMI) announced that the statewide seasonally adjusted unemployment rate had risen to 9.3% in February (the non-seasonally adjusted rate was 9.7%). By comparison, the national seasonally adjusted rate dropped further to 8.9%. Prior to January, the last time Colorado’s rate was higher than the U.S. was September 2005.

Seasonally adjusted unemployment rates for the state’s Metropolitan Statistical Areas (MSAs) are:
• Boulder  7.3%
• Fort Collins 7.9%
• Denver 9.4%
• Colorado Springs 10.1%
• Greeley 10.7%
• Grand Junction 11.0%
• Pueblo 11.1%.
These metros areas account for about 86% of the Colorado labor force. A majority of the state MSAs have unemployment at or above 9.4%.

There is more to the story…

Through February, year over year, seasonally adjusted data points to weak employment gains of 13,800 workers.

The areas of net job growth are:
• 11,400  Private education and health care
• 8,200  Tourism
• 8,200  Professional business services
• 2,200  Trade, transportation, and utilities
• 2,100  Oil, gas, and mineral extraction
• 800  Personal services
Employment in these 6 sectors is about 63% of all workers and 57.3% of total wages. The increase is about 32,900 workers.

The areas with continued declines are:
• -8,900 Construction
• -3,900 Financial Activities
• -3,200 Information
• -2,600 Government
• -500 Manufacturing
These 5 sectors have shown losses of 19,100.

It is good news that there is an increase in net jobs; however, there are 3 areas of concern:
• The weak level of net job growth is being driven by a reduction in job losses rather than a significant increase in job gains.
• Many of the jobs that are being added are not primary jobs.
• Many of the jobs being added pay lower wages and have less on an impact on the economy.

So, are we headed for continued improvement and another Roctober or lackluster economic growth and another October watching other teams play in the World Series? A few months from now we will have a much better idea where the economy and Rockies are headed.

©Copyright 2011 by CBER.

Hickenlooper Proposes Closure of Fort Lyon Correctional Facility

Governor Hickenlooper recently proposed closing the Fort Lyon Correctional Facility as part of cost cutting measures to bring the state budget into balance. The facility employs roughly 200 workers.

For those in the metro area companies come and go and the loss of a company with 200 employees often goes unnoticed, unless a person works there. Approximately 1.2 million people work in the Denver-Aurora-Broomfield MSA, so a loss of 200 jobs would be 0.02% of total employment- not even a bleep on the radar. Bent County residents obviously have a different perspective.

A short lesson about the county will provide insight into their point of view. Bent County is located in Southeast Colorado east of Pueblo, between Otero and Prowers County. Approximately 6,500 people call the county home. Between 2000 and 2009, Bent County population actually increased by about 650 people, or an annualized rate of 1.2%. While this is less than the rate of growth for the state, at least it is positive. Not all rural counties in Colorado have seen their population expand over the past decade.

A review of Census data (Quickfacts) shows that there are about 2,000 households in the county and 2,400 housing units. There is a higher concentration of minorities (Black, American Indian, and Hispanic – terms used by the Census Bureau ).

About 65% of the population (which include prison inmates) are male. As is the case with many other rural counties, Bent has a lower concentration of people under the age of 18 and a higher percentage of workers over the age of 65.

In 2008, median household income for the county was about $33,000 compared to $57,000 for the state. As might be expected from these income levels, approximately 29% of the population lives below poverty level.

With that background let’s look again at the importance of the correctional facility. Fort Lyon is Bent County’s second-largest employer. (Note: Many Colorado rural counties are the home to correctional facilities).

Data from the Colorado Office of Labor Market Information  (QCEW) reported that in 2009, Bent County has 1,303 covered workers (workers on payrolls who paid unemployment insurance) in 88 establishments. Only 560 are private sector employees.

At that time the top employment sectors were as follows: local government (451), state government (234), retail (68), hotels and restaurants (65), federal government (58), health care and social assistance (49), and finance and insurance (45). In December, 2009 the county unemployment rate was 8.7% (LMI). The loss of 200 employees in this economy would be devastating!

Should Governor Hickenlooper rescind his recommendation to eliminate the Fort Lyon facility? If so, what other programs can be cut or eliminated to keep the facility in operations? There is no right answer and there is no winner in this situation.

It’s a tough time to be a governor!


©Copyright 2011 by CBER.