June economic forecast anticipates steady increase in good-paying jobs for Coloradans, unemployment rate remains below the national average
DENVER - The Governor’s Office of State Planning and Budgeting (OSPB) released its quarterly economic forecast today.
“Colorado’s economy continues to recover faster and stronger and ahead of other states, as new good-paying jobs are added every week and Colorado’s unemployment rate continues to plummet. Amidst this strong economic recovery, we remain laser focused on saving people money and cutting costs for Coloradans as Putin’s war in Ukraine and pandemic-induced inflation lead to higher costs across the country and globe. We are moving forward with over 100 ways to save Coloradans money including a tax rebate of at least $500 for every taxpayer this summer, and we continue working hard to find even more ways to help Coloradans hold on to more of your hard-earned money,” said Gov. Polis.
The forecast shows that Colorado’s job growth and retail sales growth continues to outpace the nation, and despite nationwide inflation and supply chain headwinds, Colorado’s unemployment rate is forecasted to remain below the national average.
Across the country, inflation and supply-chain constraints are forecasted to remain a top concern, which is why the Polis Administration remains committed to cutting costs and saving Coloradans money with over 100 ways to save Coloradans money including tax rebates of over $500 for individuals and $1,000 for joint filers, saving families $4,300 per year with universal preschool, ending the sales tax on fertilizer, cutting the cost of a state parks pass to $29, reducing payroll taxes, delaying any new fees on gas, and more.
The OSPB economic forecast projected General fund revenue is projected to increase to $17.2 billion in FY 2021-22, a 20.3 percent change from the prior fiscal year. The projection for FY 2021-22 is $1,021.4 billion higher than the March forecast, in response to record high income tax revenue in April, a record month for many states. As the economy enters a new period, OSPB anticipates less dramatic increases in revenue for FY2022-23.
In FY 2021-22, cash fund revenue subject to TABOR revenue is projected to increase by 16.9 percent to $2.62 billion, followed by a 1.8 percent reduction in FY 2022-23 and 4.4 percent growth in FY 2023-24.
Nationally, the U.S. economy is continuing to rebound, however the nation faces greater headwinds than previously expected due to global inflationary pressures including the Russian war in Ukraine, and companies are passing higher input prices onto consumers, resulting in price growth for energy, food, and shelter prices, and the impact of the monetary policy response’s impact on aggregate demand. Wage growth is forecasted to continue at a rapid pace, as job openings continue to outnumber unemployed workers.