Colorado’s unemployment rate fell to 3.8% in December, according to new data released Tuesday. 

The rate dropped one-tenth of a percentage point, following a monthslong trend of declining unemployment in the state, according to the Colorado Department of Labor and Employment’s report. The national average also fell by the same amount to 4.4%. 

Colorado’s unemployment rate peaked at 4.8% last May, state data shows. 

The number of unemployed people in the state fell to 123,800 between November and December, down by 2,000.

The state’s labor force also fell in the last month.

Colorado’s labor force fell by 3,300 people in December to a total of approximately 3.26 million. The labor force participation rate fell to 66.9%, down from 67%. The state said it’s the lowest participation rate since October 2020, though it’s still above the national average of 62.4%.

The state added 1,200 jobs in the last month, pushing the state to have more than 3 million jobs by the end of 2025. The largest gains in December were in the education and health services sector with 2,800 added jobs and manufacturing with 1,400 jobs. The largest losses were in the leisure and hospitality sector with jobs down 2,300 jobs and trade, transportation and utilities at 1,800.

The state will not release jobs data in February for the annual benchmarking. January’s labor report and the benchmarking revisions typically are released in March, but it may be delayed this year. CDLE said the federal government shutdown has delayed data releases for 2026. It’s still not clear when monthly data reports will be released on their normal schedule.