Colorado’s unemployment rate is improving, according to the Colorado Department of Labor and Employment. 

The state recorded 134,000 unemployed people in September, 4,800 fewer people compared to August. The state’s unemployment rate fell from 4.2% to 4.1%.

The national unemployment rate was 4.4%. 

The state released September’s data on Thursday, which was delayed by more than seven weeks due to the federal government shutdown.

The employment data was collected before the shutdown that ended up being the longest in U.S. history.

The CDLE said it would publish a report for October’s employment data because the government did not collect household survey data during the month and will not collect it after the fact.

Instead, the state will include October’s establishment survey data in November’s report, though the CDLE has not set a date for when it will release the next set of Colorado labor market data. 

It will likely follow after Dec. 16, when the Bureau of Labor Statistics plans to publish its federal November data.

Colorado added 500 jobs in September, the report said.

The number of Coloradans participating in the labor force fell in September by 3,400 people, pushing the labor force participation rate down by one-tenth of a percentage point to 67.3%

In the last year, from September 2024, the state added more than 18,000 jobs. The largest gains were in the educational and health services sector, making up more than 50% of the state’s job gains.

Leisure and hospitality added 8,800 jobs, the information sector added 2,900 jobs and professional and business services added 1,600 jobs.

The state saw job losses in the financial activities sector (-4,800), trade, transportation and utilities (-4,600) and construction (-3,200).

Colorado has seen 0.6% job growth year-over-year, slightly below the national average of 0.8%.

The University of Colorado Boulder estimates the state’s job growth will pick up a little next year, but will still be slow.

Colorado’s unemployment rate has been slowly declining since hitting a high of 4.8% in May.