New weekly unemployment claims in Colorado fell below pre-pandemic levels for the first time in more than 68 weeks.

The Colorado Department of Labor and Employment July 24 report shows there were 3,317 regular initial unemployment claims, plus 1,119 more claims through the federal Pandemic Unemployment Assistance program for gig, contract and self-employed workers.

Claims shot to historic highs the week ending March 21, 2020, when the COVID-19 pandemic shut down whole business sectors and thousands were suddenly jobless.

“As Colorado’s economy begins to rebound, we’re focused now on connecting Coloradans to available work opportunities before the federally funded pandemic benefits end in the coming weeks,” said CDLE Executive Director Joe Barela in a statement.

Those additional and extended benefits under the American Rescue Plan Act expire Sept. 4, which includes Pandemic Emergency Unemployment Compensation and Federal Pandemic Unemployment Compensation benefits.

The department shows 98,000 Coloradans receiving continued federal benefits will lose them after that date if they haven’t found a job. There’s also 36,000 residents currently receiving the $300 weekly federal supplemental compensation checks. Regular state benefits will continue.

In August, the department will begin implementing what’s called two-factor authentication for anyone making claims under the UI+ system, which is online. That means a person would have to enter a username and password like normal, but then also enter a code that’s texted or emailed to the recipient.

“We realize there’s a digital divide with some claimants, but we told them this date was coming,” said Phil Phil Spesshardt, branch manager of the Unemployment Insurance Operations, at a July press conference. “We told the call center … beginning August 4, we’d set up the authentication.”

Spesshardt also warned there’s still scammers and fraudsters trying to get claims illegally and often resort to identity theft.

“Don’t click on any links in texts,” Spesshardt said.

Department officials said they are increasing outreach efforts to claimants whose federal benefits end in September. There are more than 111,173 job postings currently listed on ConnectingColorado.com.

Though Colorado’s unemployment rate remained at 6.2% in June for the second month in a row, department statistics show Colorado’s job recovery rate through June is outpacing the U.S.

As of the end of June, Colorado recovered 73.5% of its total nonfarm payroll jobs lost in March and April 2020. Colorado’s private sector recovery rate is even higher at 78.2%, department records show. The U.S. recovery stood at 69.8%.

“We’ve made strong gains in unemployment,” said Ryan Gedney, Senior Economist. “We’re making a strong recovery compared to the rest of the nation.”