Coloradolabormarketshiftsamidwagehikes,automation

Despite a drop in the state’s unemployment rate, Colorado’s job market is a study in contrasts.

While the Colorado Department of Labor and Employment (CDLE) reported a decrease in the August unemployment rate to 4.2%, Rick Hermanns, CEO of global staffing company HireQuest, warns that rising minimum wages and the rapid adoption of technology are creating significant stress and a softer unemployment landscape.

Hermanns points to soaring labor costs as a major driver of change in employer behavior. With Denver’s minimum wage set to reach $19.29 per hour in January, up from $18.81 in 2025, businesses are moving aggressively to recalculate budgets.

“Part of it is when your least costly employee is nearly $20 an hour, you start watching that number more carefully, and you invest in technology to remove those employees,” Hermanns said.

Read the full article: Colorado labor market shifts amid wage hikes, automation