Colorado’s unemployment edged lower to 6.1% in July, but only because nearly 3,000 people left the job market and as a result were not counted as unemployed, the U.S Bureau of Labor Statistics reported Friday.

The July jobless rate, which had been 6.2% in June, was the lowest since the COVID-19 pandemic triggered a statewide stay-at-home order in March 2020 that idled more than 375,000 workers, many in the hotel and restaurant industries. But the state’s unemployment rate is still more than double the 2.8% rate in February 2020 and the number of people employed is still about 72,000 below the December 2019 peak of 3.07 million.

The slight decline in July, based on a survey of households conducted in middle of last month, comes as employers report they can’t hire enough workers to fill openings. Many blame an extra $300 a week in unemployment benefits as well as extension in traditional jobless benefits, all of which expire in about two weeks. Nearly three fourths of the 157,700 drawing benefits in Colorado are in expiring programs, according to data from the Colorado Department of Labor and Employment.

Unemployment rates in all of Colorado’s metro areas but Pueblo fell sharply in July from June with Colorado Springs declining from 6.5% to 6.2% and Denver decreasing from 6.3% to 6%. Boulder had the biggest drop from 5.5% to 4.9%, the lowest rate among the seven metro areas. Pueblo remained unchanged at 8.6%. Unlike the state rate, the metro area jobless rates are not adjusted for seasonal changes.

A separate survey of employers showed Colorado added nearly 15,000 payroll jobs in July with government adding the most jobs, 6,300, followed by professional and business services, 5,000, and leisure and hospitality, 4,300. The construction industry and the trade, transportation and utilities sector shed a combined 3,200 jobs last month. The bureau also revised June’s payroll gains lower by 800 jobs to 10,000.

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