Colorado’s new entity filings surged 39.1% year-over-year, according to  Aug. 10, 2023, by the University of Colorado Boulder and Colorado Secretary of State Jena Griswold.

The Quarterly Business and Economic Indicators report is prepared by the Leeds Business Research Division (BRD) at CU Boulder in conjunction with the Colorado Secretary of State’s Office.

The latest report for the second quarter of 2023 shows that Colorado recorded 54,890 new entity filings, most of which were LLCs. Quarterly filings remain elevated but decreased by 1.6% from the record high in the first quarter.

Dissolutions improved in the second quarter. The number of dissolutions were nearly flat year-over-year and decreased over the quarter. Dissolution filings totaled 11,785 in Q2 2023 compared to 11,753 in Q2 2022—a change of 0.3%. Filings decreased 15.8% from the 14,000 recorded in Q1 2023.

Business renewals decreased over the year and over the quarter. There were 171,081 renewals in Q2 2023, a decrease of 0.6% year-over-year and 11.8% over the previous quarter. Businesses in good standing increased in the second quarter. Total entities in good standing increased 9% from the second quarter of 2022 to the second quarter of 2023, continuing a general upward trajectory.

Inflation continued to improve in the second quarter. The Consumer Price Index increased 5.1% year-over-year in May 2023 in the Denver-Aurora-Lakewood metropolitan area (MSA), while the national rate slowed to 3% in June. Core inflation, which includes all items except food and energy, increased 5.6% in the Denver region.

While Colorado remains above average in the jobs recovery from the pandemic recession, the state’s jobs growth cooled significantly in 2023.

The state’s job growth accelerated to 1.5% in June 2023, ranking the state 44th nationally. Evidence suggests this is a signal of a supply constraint rather than easing demand, as well as a data reporting issue that is understating Colorado’s job totals.

The largest annual percent increases came from leisure and hospitality, mining and logging, and government. However, losses were recorded in financial activities; information; trade, transportation, utilities; and construction.

The employment slowdown arises at the same time Colorado records the 14th-highest job openings rate, the 4th-highest labor force participation rate, the 14th-fastest growth in labor force and the highest number of people in the labor force in state history.

With an unemployment rate of just 2.8%, Colorado’s slowdown in job growth appears to be a symptom of a worker shortage rather than softening demand for workers. Other economic metrics remain positive but also suggest a slowdown in Colorado’s economy. The state’s GDP, personal income and taxable retail are posting positive but slower growth.

“The growth in establishments and strong underlying components of the labor market suggest the slowdown in job growth appears to be a labor supply issue rather than a signal of business distress,” said Brian Lewandowski, executive director of the Business Research Division.

U.S. real gross domestic product (GDP) accelerated in the second quarter. Initial reports for GDP for Q2 2023 indicated 2.4% growth, up from 2% growth from the first quarter.

You can find monthly information on key economic statistics and trends that impact the state on the , launched by the Colorado Secretary of State's office in conjunction with BRD.

This issue highlights the 54th annual Colorado Business Economic Outlook Forum held on December 10 in Denver. Colorado’s employment growth is expected to slow this year compared to 2018, although the state will still be in the top 10 states.
Read/Download the Colorado Business Review, Issue 1, 2019

The Colorado economy reaccelerated in 2018. Midway through the year, gains are expected across the board in all industries.
Read/Download the Colorado Business Review, Issue 3, 2018

Colorado's outdoor recreation industry is a significant contributor to the state's economy, with $28 billion in consumer spending and $2 billion in taxes annually. The economy also contributes over 200,000 direct jobs.
Read/Download the Colorado Business Review, Issue 2, 2018

Business filings from the Colorado Secretary of State’s Office serve as a barometer of the health of the economy. The latest Secretary of State Indicators quarterly report showed continued growth in business filings and an overall positive outlook for the state economy despite slower growth.

BRD's Q2 indicators report released by the Colorado Secretary of State's office

Brian Lewandowski, Leeds School, 303-492-3307
brian.lewandowski@colorado.edu
 

Rich Coolidge, Colo. Dept. of State, 303-860-6903
richard.coolidge@sos.state.co.us

Andrew Cole, Colo. Dept. of State, 303-860-6903
andrew.cole@sos.state.co.us

Elizabeth Lock, CU-Boulder media relations, 303-492-3117
elizabeth.lock@colorado.edu
 

July 25, 2014

Continued Colorado employment growth expected in 2014, says CU-Boulder report 

Moderate employment expansion in Colorado for the second half of 2014 is expected based on a second-quarter report by the University of Colorado Boulder Leeds School of Business, released today by Colorado Secretary of State Scott Gessler.

“Coloradans continue their entrepreneurial spirit and are putting their creative ideas to the test,” said Gessler. “Their leadership and innovation should translate to moderate employment growth through the rest of the year.”

The Quarterly Business and Economic Indicators Report is prepared by the at the Leeds School using data from the secretary of state’s central business registry.

During the second quarter, a total of 24,601 new businesses filed with the secretary of state’s office -- a decrease from the previous quarter, but an increase over the same period last year.

“Weakness in new entity filings in late 2013 and early 2014 caused us to pause somewhat in our outlook,” said economist Richard Wobbekind, executive director of the Leeds School’s Business Research Division. “But strong filings in subsequent months have reaffirmed healthy employment expectations for the rest of 2014.”

The quarterly report is based on an analysis that found a strong correlation between new entity filings and total nonfarm employment.

Colorado recorded 92,569 new entities during the past 12 months ending in June -- a 4.8 percent increase from the previous 12 months.

At 98,230 for the second quarter, existing entity renewals also were up by nearly 4 percent compared with the same period in 2013. The second quarter finished with 538,571 total entities in good standing in the business registry, a 0.9 percent increase from the prior quarter and a 5 percent increase from the previous year.

Visit the secretary of state’s website at to view current and past reports or to sign up to receive reports by email.

The Miami Herald

-CU-

Related Articles