The King Soopers strike last month moved like a shockwave through state employment counts, registering as a net loss of 8,900 jobs between January and February and pushing the state’s 12-month employment gain to an anemic 500 jobs, according to a monthly update from the Colorado Department of Labo r and Employment. The state’s unemployment rate, based on a separate household survey, held steady at 4.7%, leaving Colorado uncomfortably behind the  4.1% U.S. rate. Colorado tied for having the 45th worst unemployment rate alongside Alaska. “The weak growth puts Colorado in a precarious position. The state budget has a $1.2 billion shortfall that will present challenges and program cuts in upcoming years. There are a lot of good things happening in the Colorado economy; however, Colorado is not in a position of strength to deal with federal policies that negatively impact Colorado employment,” said Broomfield economist Gary Horvath in emailed comments. Employment counts are based on the week that includes the 12th of the month. About 10,000 King Soopers workers were on strike that week and returned to their jobs on Feb. 18, just after the deadline. The labor action contributed to a drop of 11,000 jobs in the trade, transportation and utilities sector between January and February, with an emphasis on retail trade. The March numbers should look better with those workers back on the payroll. But there are other signs of softening. January payroll counts were initially estimated to be up 3,900 from December, a respectable monthly increase. But as more employers reported their headcounts to the state unemployment insurance system, the gain ended up closer to 500. Five hundred is also the net number of jobs Colorado employers were estimated to have added over the past 12 months through mid-February. That rounds down to a 0% annual growth rate, which is behind the 1.2% growth rate for the U.S. Related Articles Frustrated Coloradans face delays in getting unemployment benefits, struggle to get answers Colorado employment data now reliable enough to trust again, federal government says Colorado’s U.S. senators say they won’t support Republican spending bill as shutdown looms Meati Foods shutting down its Thornton plant and laying off 150 workers Nearly $45 million in Colorado safety grants still frozen by Trump administration, officials say Since February 2024, the private sector has shed 14,700 jobs, while governments have added 15,200 jobs. Even ignoring the King Soopers strike, the public sector has carried the weight of hiring in Colorado the past year, but that support looks ready to buckle. The Department of Government Efficiency plans to make dramatic cuts to the federal workforce, which provides about 57,000 civilian jobs in the state. Colorado’s budgetary restrictions and the potential loss of federal grants could force the state to shift from growing to shrinking its workforce in the months ahead. Even without the strike impacts, Colorado’s economy this year is adding jobs at its slowest pace since the first quarter of 2021, when economies around the globe were still reeling from COVID-19. Get more business news by signing up for our Economy Now newsletter. ...read more read less