According to the Colorado Department of Labor and Employment, the state’s unemployment rate eased to 6.8%, its lowest level in nearly five years.
The last time Colorado’s official jobless rate was that low was in January 2009, when the rate stood at 6.7% on its way up to highs over 9% in 2010. The rate stood at 7.7% a year earlier.
High unemployment not only drags down the demand for housing, but creates a negative cyclical effort on the economy. When the unemployment rate is high, millions of people can’t afford to buy houses. When people aren’t buying, builders aren’t out building new houses. As a result, more and more construction workers are jobless – which adds to the unemployment rate.
Unemployment also creates more foreclosures, so it makes sense that since unemployment rates are down foreclosure filings are down as well.
We are very grateful that the real estate market has, to a large extent, stabilized in the Denver metro region. Please check out our Gratitude Corner and be sure to engage in the conversation with us. Alaris wishes you peace and joy this holiday season!