Pueblo County ranks among the most unemployed counties in Colorado. Why is that the case?

Nearly 4.5% of Pueblo County's workforce was unemployed in December 2023, placing it among the most unemployed counties in the state, according to the Colorado Department of Labor and Employment.

Only Huerfano, Las Animas, Fremont, Rio Grande and Costilla counties recorded higher unemployment rates than Pueblo at the end of 2023. However, each of the top five counties had less than 700 total unemployed residents compared to Pueblo County's total of 3,428 unemployed residents.

While Pueblo County's unemployment rate of 4.5% is the sixth highest in the state, the percentage itself is "historically very low" for the county, according to Ryan Gedney, a senior economist for CDLE.

Gedney cited annual data from the Bureau of Labor Statistics to support his assessment. Annual unemployment rates in Pueblo County were at 5% or higher throughout the 1990s. An annual rate of 3.9% was recorded in 2000 before unemployment rose above 5% the following year.

"In 2007, Pueblo's (annual) unemployment rate fell to 4.7%... then the Great Recession happened next year — Global Financial Crisis... no area was spared," Gedney told the Chieftain. "Pueblo's unemployment rate didn't fall back below 5% until 2016."

Between 2010 and 2012, effects of the Great Recession kept Pueblo County's annual unemployment rate above 10%. The annual rate dipped to 4% in 2019, but the COVID-19 pandemic launched the rate up to 7.7% in 2020.

Jeff Shaw, president and CEO of the Pueblo Economic Development Corporation, told the Chieftain that Pueblo County's most recently recorded unemployment rate of 4.5% is higher than PEDCO would like, but is "certainly not a difficult number."

"When we get above that 5-and-a-half, 6% that we start getting, we will probably get more concerned and start worrying about what's causing it to some degree," Shaw said.

However, Shaw also said that Pueblo's unemployment rates typically are "a little bit higher" than other areas of the state. Colorado's state unemployment rate was 3.3% in December 2023. The national rate for that month was 3.7%, according to the Bureau of Labor Statistics.

Why does Pueblo have a higher unemployment rate than the rest of Colorado?

Several factors may contribute to Pueblo County and other areas of southern Colorado having a relatively high unemployment rate compared to the rest of the state, Gedney said.

"Some of those factors can be due to industry or occupational mixes," he said. "You may have higher concentrations of industries or occupations in that area that tend to have historically higher levels of unemployment."

Additionally, a Colorado Employment Situation report released by CDLE on Jan. 19 suggests a relationship between unemployment rates and educational attainment.

In 2023, Coloradans age 25 or older without a high school diploma had an unemployment rate of 6.9%. Unemployment rates were as low as 3% for high school graduates, 2.4% for those who had attended some college and 1.7% for those who had at least a bachelor's degree.

U.S. Census Data from 2018-2022 found that 24.1% of Pueblo County residents 25 or older have a bachelor's degree. Statewide, 43.7% of Coloradans 25 or older have a bachelor's degree. About 90% of Pueblo County has graduated high school, compared to 92.5% of Colorado.

Geographic isolation from job opportunities also may play a role in Pueblo County's relatively high unemployment rate.

"If you think about the northern part of Colorado, you have Fort Collins, Greeley, Boulder, Colorado Springs, Denver," Gedney said. "I would say roughly 80% of the state's population and employment is concentrated in those general areas."

Which industries have the most employees in Pueblo?

About 12,900 employees from Pueblo were working in trade, transportation and utilities, according to preliminary Bureau of Labor Statistics totals from December 2023. Another 12,700 workers were working in education and health services and 12,200 were working in government.

Pueblo's largest private employer, UCHealth Parkview, finalized a merger with UCHealth late last year. However, the merger has not impacted unemployment, according to Parkview communication specialist Todd Seip.

"In fact, we are working diligently to fill over 230 open clinical and non-clinical positions," Seip said. "The UCHealth Ascend Career program allows for community members to apply for entry level positions and receive education and tuition benefits (in some cases even a GED) on day 1 of employment."

While Parkview is working to fill positions through the UCHealth Ascend Career program, PEDCO is actively working with Colorado State University Pueblo, Pueblo Community College, local school districts and manufacturers to grow Pueblo's workforce.

"Workforce is a nationwide conversation, because right now, there's a shortage of workforce nationwide — especially in skilled manufacturing and skilled trades," Shaw said. "There's a big opportunity for those that want to find employment in the manufacturing sector or skilled trades."

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Pueblo Chieftain reporter James Bartolo can be reached at JBartolo@gannett.com. Support local news, subscribe to The Pueblo Chieftain at subscribe.chieftain.com.

This article originally appeared on The Pueblo Chieftain: Why Pueblo County's unemployment rate is among the highest in Colorado