Tamara Chuang | Business/Technology Reporter
Quick links: Flat 3.7% unemployment rate | Return of housing market? | Coloradans tip the most | Greeley welcomes startups
T’was a big week for economic news. U.S. inflation slowed to 3.4%. The Dow Jones Industrial Average reached 40,000 for the first time ever. And President Joe Biden announced new tariffs on Chinese electric vehicles, solar cells, computer chips and other imports.
Closer to home, the Denver-area inflation had already been falling, dropping to 2.8% in March (Denver’s rate is released every other month). Colorado’s housing market had more houses put on the for-sale market as sale prices continued to climb. And Gov. Jared Polis called Biden’s tariffs “horrible news,” calling it a “regressive tax on Americans.”
What to make of the latest economic news?
That really depends on your pocketbook.
Here are a few reader responses to a recent What’s Working poll on how’s your personal economic outlook, edited for clarity and with the latest data points underneath:
“Home and auto insurance are up over 40% the past 4 years yet I have 9 and 10 year old cars.”
➔ The cost of auto insurance for U.S. urban consumers has grown 22.6% in one year, according to the Consumer Price Index. In the past decade, it’s nearly doubled, up 93.7% since April 2014. >> See the data
“Groceries are insane. Rent renewal was $110 a month higher. Been here for years so I’m ‘below market rate.’ Such BS for the same apartment.”
➔ According to CPI for the Denver metro area, rents are up 4.2% from a year-ago March, and up 29.5% since March 2018. ApartmentList, which tracks more areas in Colorado, recorded rent increases between 12.1% for Greeley to 29.9% in Parker since April 2020. Parker also had the highest one-year increase of 2.9% since April 2023 while Colorado Springs had a 3.2% drop in monthly rents. >> Rent data
“The vet for our pet raised already high prices. Doctor and medical is more. It’s all ridiculous! Restaurants adding HUGE service fees and keeping tipping too! Yet, we see all these huge corporations making billions in profits! Are the CEOs taking pay cuts?? Nope.”
➔ The cost of eating out continues to rise, increasing 7.6% from March last year, according to CPI numbers for Denver in March. Since March 2020, the cost is up 33.3%. On an annual basis, the cost of eating out is up 48.8% since 2014. Meanwhile, the cost of pet care, which includes veterinary services, has risen 32.3% since 2020, and is up 4.9% since April 2023 in the U.S. Increased costs of pet care has caused some pet owners to give their pets away. >> Read
Many respondents are still feeling the financial squeeze that has built up over the years. And that’s not reflected in new economic data, which unusually only reports the change from last month or since last year. In other words, inflation may be slowing, but the price of goods and services has gone up double digits over time and that is what consumers understand most.
“I love the data,” said Gary Horvath, an economist at cber.co in Broomfield who’s been at it for more than three decades. “But it’s the anecdotal evidence, something that you can relate to. It’s like if you go to a restaurant and the waiting times are less. Or if you go to a shopping mall and everyone has fewer bags and they’re from less expensive stores. The anecdotal evidence is right there. And to that extent, people have an advantage over the people on Wall Street who are waiting for the latest data to come in.”
The data, of course, continues to pour in.
Just 300 jobs added; unemployment rate unchanged at 3.7%
On Friday, the Colorado Department of Labor and Employment announced April’s unemployment rate was unchanged from March, at 3.7%. It is lower than the U.S. rate of 3.9%.
An estimated 1,500 more Coloradans joined the state’s labor force last month but that didn’t change the results. Of the 3.23 million adults with a job or who were looking for one, the number of those who were unemployed also grew — by 1,900 to 120,100 people unemployed. Hence, the flat unemployment rate (i.e. divide 120,100 by 3.23 million). That still leaves 3.1 million Coloradans who are employed.
But the number of jobs created is shrinking. Employers added a mere 300 nonfarm payroll jobs between March and April and that was credited to government hires. Meanwhile, the previously reported March job growth wasn’t as strong either, and job gains of 5,300 were revised to 2,800 jobs instead.
State labor department senior economist Monicque Aragon said the April slim job growth was expected somewhat because it’s coming off a very strong February, which fared better than originally announced. Employers in February, in fact, added 10,700 new jobs, according to revisions made last month.
“While 300 over-the-month job growth was lower than expected given the 175,000 gain for the nation, Colorado has added nearly 20,000 jobs so far this year, which is right in line with expectations compared to U.S. job growth over the same time period,” Aragon said in an email. “However, both U.S. and Colorado showed subdued growth this month. … However, with the U.S. showing an upward revision to national estimates for March, it was difficult to predict which direction the March revisions would go.”
Wages continue to rise, with the hourly average wage increasing to $38 from $35.72 a year ago. The U.S. average was $34.75.
Colorado home sales, April 2024
The number of homes sold was up in Colorado and Denver, thanks to an increase of new houses hitting the market in April. Higher interest rates had kept some homeowners from selling in order to hang on to their much lower mortgage rates.
The Denver-area added more than 1,000 new houses for sale from a year ago to 5,513 for-sale homes in April, “a near two-year high for Denver County,” said Cooper Thayer, a Denver-area Realtor, in a statement from the Colorado Association of Realtors.
But not all parts of the state saw a better housing market. In El Paso County, home to Colorado Springs, new listings rose by a mere 35 houses to 1,298, up 2.8% from a year ago. The number of houses sold reached a new low for April, with just 860 houses sold, down 7.5% from a year ago and a 31% decline from April 2019.
Area median prices are up 7.1% from a year ago but long-time Colorado Springs Realtor Patrick Muldoon said that’s a mixed signal. He’s seen demand for higher-priced, specific homes while lower-priced ones sit on the market for weeks. That’s skewing the data and makes it challenging for agents to figure out what buyers want.
“There’s no rhyme or reason and it’s been very difficult to tell your clients what to expect in this market,” he said. “I think part of that is just simply that we have so few solds.”
➔ Look up April housing data by county, courtesy of Colorado Association of Realtors >> CAR market trends
Sun economy stories you may have missed
➔ Colorado EV sales dropped off by one measure, but green energy leaders say sky remains blue. Dealers worry about high loan costs, threats of Chinese imports and confusing rebates, but state says there’s no turning back. >> Read story
➔ Colorado looks to get lead out of aviation fuel as a new study adds to potential health concerns. A Colorado Department of Public Health and Environment study showed that kids living closer to airports have higher amounts of lead in their blood. >> Read story
➔ Federal law banning import of Russian uranium spurs hope for a U.S. renaissance, new life for Western mines. Colorado’s Energy Fuels says its mine near Gateway could begin uranium production as prices for nuclear fuel climb and U.S. lawmakers add uranium to list of banned Russian imports. >> Read story
➔ Colorado receives $32.8 million to replace decades-old lead pipes and improve drinking water systems. Lead was once commonly used to build water service lines in communities because it was cheap and flexible but corrosion and high levels of it can cause serious health problems to children and adults. >> Read story
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Other working bits
➔ Greeley launches business accelerator. The city of Greeley has partnered with venture firm gener8tor on a startup business accelerator in hopes of attracting entrepreneurs to the city, according to a news release. The gBETA Greeley program will provide a seven-week accelerator with mentors and resources that takes “zero equity” so founders can keep ownership to themselves. Applications are being accepted and for those who make the cut, the program starts Oct. 17. >> Details
| Top tippers: 1. Colorado: 14.3% 2. South Carolina: 14.2% 3. Vermont: 13.9% 4. Idaho: 13.7% 5. Nebraska: 13.6% 6. Indiana: 13.5% 7. Montana: 13.4% 8. New Hampshire: 12.9% 9. North Dakota: 12.8% 10. Washington: 12.5% Source: SpotOn |
➔ Colorado has big tippers. Don’t call it “tipflation,” but Coloradans are tipping 0.3% more than they were six months ago, according to SpotOn, which provides payment software to restaurants and small businesses. Colorado was already at the top for average tips, at 14.3%, which was higher than California (at 9.9%) and Texas (9.6%). That average tip data includes not just dine-in but tipping on to-go orders, at coffee shops and other places beyond restaurants. A SpotOn survey of 1,000 tipped workers nationwide found that nearly half say they rely largely on tips, but only one in five expected to be tipped 20% or more. As we’ve previously reported, tips are getting larger in Colorado just as food bills are. >> Earlier story
➔ More “I” for Denver International Airport. The first direct, nonstop flight from Denver to Dublin, Ireland, took off Friday at DIA. Aer Lingus, which previously announced its expansion to Colorado last year, is offering flights to Ireland four days a week. Last month, DIA added Turkish Airlines, which will begin nonstop flights to Istanbul International Airport on June 11. The airport also added Breeze Airways, which had its first nonstop service to Rhode Island T. F. Green International Airport in Providence, this week.
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Thanks for sticking with me for this week’s report. Remember to check out The Sun’s daily coverage online. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co/heyww. ~ tamara
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