The number of new entities filing to do business in Colorado jumped 22 percent during the fourth quarter from the prior year, according to a report from Colorado’s Secretary of State.
Filings slipped more than 10 percent compared with the previous quarter, but were still higher than at the start of the year, the report found. New business filings reflect the strength of the state’s entrepreneurial companies.
An economic rebound that started when COVID-19 restrictions lifted over the summer was interrupted by a renewed surge in cases at the end of the year.
While Colorado added back jobs every month from May through October, losses resumed in November and December, the report found, when a combined 25,000 jobs were lost. The largest annual declines are in leisure and hospitality, and mining and logging.
A total of 10,043 businesses dissolved in the fourth quarter, an 8.1 percent increase from 2019, and 18.7 percent increase from the prior quarter, the report found.
More stories about the pandemic's economic downturn:
- Will Empty Denver Skyscrapers Fill Up Again With Our New Work From Home Normal? One Exec Says Yes
- Promise Of Vaccines Boosts The Optimism Of Colorado Business Leaders For 2021
- Colorado Businesses See A Temporary Lifeline As Polis Rolls Back Coronavirus Restrictions
- Low-Wage Workers Bear The Brunt Of The Pandemic’s Economic Fallout
The tourism industry is among the hardest hit by the pandemic nationally, according to the Bureau of Labor Statistics.
In Colorado, industries paying less than $50,000 per employee — which often includes jobs in leisure and hospitality — shed 25 percent of jobs from January to April, and were still down 10 percent in December, according to the report.
By contrast, jobs that pay at $75,000 declined 1.8 percent early in the pandemic and were down less than 1 percent as of December.
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