When it comes to employment, Colorado appears to be doing great.
In May, the labor force participation rate in Colorado was the fourth highest in the country, with 68.6% of 16-to-55-year-olds working. The unemployment rate in April was only 2.8%. During this same period, the number of open jobs was 243,000, or 2.7 jobs per person actively seeking employment.
While these numbers seem encouraging — they are cause for concern when demographic data is considered.
Though Colorado typically has relied on new residents to help fill jobs, over the past two years, net in-migration to the state has dropped and is expected to continue to decline through 2050. Like the rest of the country, Coloradans are getting older. With fewer young people expected to enter the workforce and more people expected to age out of work, our state cannot expect to fill the open jobs as it may have in the past.
How does Colorado avoid being hobbled by the combined job growth and demographic shifts? All factors point to a need to increase the range of employees in our workforce.
Though the official unemployment rate is low, it is not an accurate reflection of people who struggle to find employment. Many struggle because they have characteristics that make it harder for them to get jobs, such as individuals with disabilities, citizens returning to our communities from prison, and individuals needing additional training or education.
At Women's Bean Project we observe that when unemployment is low, and jobs are abundant, those who remain unemployed experience significant obstacles that get in the way of getting and keeping employment.
Consider Effie who, despite a seizure disorder, was very employable. However, she struggled to find a work environment that did not trigger her health issues. While in the Bean Project's workforce development program, she learned more about herself and job environments to decrease the likelihood of health issues. She eventually graduated and went to work for a restaurant bakery, her dream job, where she has remained for nearly three years.
Or Pam, whose history of addiction and incarceration related to substance misuse eliminated her from many possible careers. While working at Women's Bean Project, she attended community college and received certifications that allowed her to move into an administrative role with a felon-friendly employer.
There are thousands of prospective employees in our state who, with the right support, would make excellent employees.
In a tight labor market, employers must ensure they are offering good jobs and training opportunities. Good quality jobs are about more than wages.
They must include predictable schedules, benefits and paid time off, along with opportunities for training and advancement. We can expect jobs without these features will be increasingly difficult to fill as the labor market continues to tighten. A recent study from Common Sense Institute found the labor force shortage and skills mismatch in Colorado is costing $46 billion in additional annual GDP.
Education and training programs must prepare workers for the jobs of today and the future. The state's education system must contend with the fact that Colorado is currently experiencing a skills gap.
Forty-nine percent of jobs require education and training beyond high school but not a four-year degree, yet only 35% of workers have the skills training needed for these jobs.
First, we must ensure high school graduates have the math and reading levels required to complete the training.
In Washington state, students in community college who do not have the reading skills to be successful can participate in the I-BEST program. In this program, each classroom contains two teachers, one who is teaching relevant math and reading skills while the other is teaching the certificate-specific training.
Students in this program also receive additional support services to ensure they can succeed.
Such support can ensure improved completion rates, which are low, often leaving students without the credential and with significant debt. For a variety of reasons, 75% of community college students attend part time for at least one semester. However, the six-year completion rate for those who attend part time is less than 22%.
The post-secondary education and training systems must also ensure they are aligned with the occupations anticipated to grow the fastest in the future. Careers attained through apprenticeships are a viable way to ensure jobs of the future are filled. Apprenticeships are high-quality pathways in which apprentices receive immediate work and are paid for 1-6 years during their training.
The starting salary is $77,000 per year upon completion and 94% retain employment after completing their apprenticeship.
Colorado's workforce development system must provide marginalized groups with wrap-around services to help them move into the workforce. The state's workforce development system helps people get into the workforce and helps those who have lost their jobs find new employment.
However, a rigorous study by Mathematica found that workforce centers did not increase earnings or improve employment-related outcomes. In Colorado in 2020, of the workers who utilized workforce development training, only about half had jobs and about 70% who receive training get a job utilizing this training.
Many individuals using the workforce system also qualify for support from human services, including food assistance, support for rent and utilities costs, or access to Medicaid. Generally, workforce programs have modest results but research shows that the best success is when workforce development services are combined with wrap around services.
Coloradans are fortunate to be in a time of abundant job opportunities. Yet, to ensure we fill those jobs, Colorado must find ways to ensure people who are often left out of the workforce are able to get jobs.
— Tamra Ryan is the CEO of Women's Bean Project and the Common Sense Institute Coors Economic Mobility Fellow.
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