Colorado’s Jobs Data Questioned by Federal Agency
The U.S. Bureau of Labor Statistics has raised concerns about the accuracy of the jobs data released by Colorado in March. The bureau noted that while the information is based on official sources, it is still considered to be only an estimate.
Colorado’s labor department had initially attempted to keep quiet about the incomplete numbers obtained from companies regarding jobs and wages. However, the BLS pointed out the unreliability of this data, which is crucial at both the federal and state levels for understanding the job market.
The state’s jobs figures are typically refined using the Quarterly Census of Employment and Wages (QCEW). This data is sourced from unemployment insurance reports, providing a more reliable dataset compared to the initial monthly job reports, which are based on voluntary surveys.
Despite the importance of the QCEW data, the BLS reported “unusual movements” in Colorado’s data starting last July. The erratic numbers led to difficulties in the annual benchmarking process for 2023, with figures for the third quarter having to be extrapolated using previous data.
Colorado’s labor department faced criticism for not disclosing the data issues during a recent press conference on the annual benchmarking process. The state’s economist acknowledged that modernizing systems can lead to data collection challenges, echoing the sentiments of Governor Jared Polis.
The data discrepancies have raised doubts about the strength of Colorado’s recent job growth. However, state economist Ryan Gedney remains confident in the revised numbers, despite some months still being estimated due to data gaps.
Going forward, Colorado’s labor department aims to address the data reporting issues and improve accuracy. While Gedney is confident in the numbers, additional questions from reporters may have to wait, as he prepares to leave his position this month.
The Quarterly Census of Employment and Wages (QCEW) plays a crucial role in economic analysis, with various organizations relying on this data for different purposes. From energy prices to unemployment rates, QCEW data is essential for understanding the economic landscape and making informed decisions.
As Colorado works towards resolving its data challenges, the importance of accurate job figures remains paramount for both the state and federal government. Despite the setbacks, efforts to improve data collection and reporting are underway to ensure a more reliable representation of Colorado’s job market.
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