All across the nation, people have their eyes on the economic recovery that they hope to see coming down the road any moment; in some places this trend has already started, but in others like Colorado, the recovery and subsequent rebalancing is still off in the future.
Recovery from this recession is forecasted to be slower in the mountain states than in other parts of the country. In previous times of economic strife it has been the case that the recovery of the mountain states was faster than in other states, but it looks like this is not to be the case this time.
The reasons why Colorado will be late in its recovery are varied. Some experts believe that because Colorado was late to join many of the other states in its economic downturn that it will subsequently take longer to climb out of the slump as well. What is not just a matter of opinion though is the high levels of unemployment that can be found across the state.
While Colorado is actually one of the top ten states currently for job growth, this growth does not even begin to offset the high numbers of jobs that have been and are still being lost presently and likely will be into the next year to come. There are projected to be jobs opening up in areas of education, health services, and professional and business services; however, these new jobs will only fill the space of many times more jobs that were lost in the last couple of years, not to mention the jobs in other areas that are forecasted to still be lost this year.
Unemployment in Colorado is sitting at present at about 7.3% and is expected to drop almost another percent by this time next year. So many jobs have been lost in areas like construction, manufacturing, and financial services that it will be hard for the employment market to bounce back quickly. This next year it is also anticipated that there will be cut backs in government job positions that will further complicate matters.
It is likely that not only will the employment sector take longer to heal in Colorado than in other areas of the country, but it is also likely that the housing sector is bound to follow this trend. A languishing economy is unlikely to support a boost in real estate sales, at least from the current residents of the state. Consequently, Colorado may just be a state that potential buyers may want to buy into if they wouldn’t be subsequently looking for employment in one of the cut back job areas.
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