Colorado economic signals are mixed as businesses try to make sense of President Donald Trump’s flip-flops on tariffs.
The number of people filing to start a business was up in the first quarter compared to the end of last year, according to a joint report from the University of Colorado’s Leeds School of Business and the Secretary of State’s Office.
At the same time, the state’s executives are feeling deeply anxious about how the new administration’s trade policies are going to impact their bottom lines, the report found.
“The indicators in this report do not show any immediate or significant economic disruption to Colorado … but it does show business leaders in Colorado are nervous about these disruptions,” Secretary of State Jena Griswold said during a webinar about the report.
Colorado’s economy started slowing before Trump was sworn in for his second term. As of April, the state added 2,300 jobs during the prior 12 months, which equates to a growth rate of 0.1 percent. That compares to the U.S. rate of 1.2 percent.
Colorado now ranks 44th for job growth among the 50 states and Washington, D.C.
“We were hard-charging for a long time. Now, some of the other states are catching up and are continuing to have that growth that we had,” said Richard Wobbekind, senior economist and faculty director at CU’s Leeds School of Business.
The state’s per capita personal income and labor force participation still rank high, he said.
“We are a prosperous state, and we are growing, we're just growing at a slower rate,” Wobbekind said.
Colorado’s professional business services, which includes the tech sector, took a big hit in the past year. That sector has 8,400 fewer jobs than a year ago.
“That had been a disappointment in terms of job performance in 2024. And so far it's continuing into 2025,” Wobbekind said.
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