It’s 2023, which means a fresh new start and a year of opportunity ahead. There’s no question, however, that things like high inflation, rising interest rates and energy market imbalances have many people concerned—and unsure about what is on the horizon (like an economic decline).
And what about the workforce and shortage of skilled workers? The last few years have certainly been interesting as it relates to the national and Denver job markets. The Bureau of Labor Statistics’ most recent jobs report reported strong growth in November 2022, even if it is lower than the pace of 2021. Here in the Denver metro area, we have seen high demand in the last few years for qualified professionals in many sectors and industries—definitely in accounting and finance. But with a new year upon us, will that hold?
Colorado’s Business Economic Outlook: 2023
Last month, the University of Colorado Boulder published its annual Business Economic Outlook for 2023. The forecast analyzes changes that have occurred in all economic sectors during the past year (2022 in this case) and looks at the opportunities and challenges that will shape population, employment, and the overall economy here in Colorado as we move into 2023.
As we did in January 2022, we’re summarizing the main points of the report (but we encourage you to look through the full 2023 report for more details):
- The Colorado job market is expected to grow. Despite a slowing economy, Colorado will sustain job growth in 2023. Colorado is estimated to have increased 4.4% (120,800 jobs) in 2022, and expected to increase another 57,100 in 2023 (2%).
- Most industries are projected to add jobs. Nine of the 11 industry groups in Colorado are expected to add jobs in 2023. The two that are not: construction and financial activities (which includes finance & insurance and real estate). All things considered, this indicates a strong Colorado job market.
- Construction activity in 2022 slowed. The construction sector in Colorado ended 2021 with a 7% increase over 2020. Total construction activity is estimated at $23.7 billion in 2022—a decrease of about 1.5% from 2021. The sector is predicted to decline by about 3.4% to $22.9 billion in 2023. There are several factors at play here, but homebuilders are slowing their new production to navigate the rising mortgage rates of 2022 and contract cancellations (in excess of 40% since July 2023).
- The financial activities industry underperformed in 2022. This sector—which includes finance/insurance and real estate and rental and leasing—grew at just 0.6% in 2022 and is expected to decline 2.2% in 2023 (losing 4,000 jobs).
- Professional and business services is the industry group projected to add the most jobs. That’s good news for professional staffing firms and accounting recruitment agencies like TGRP, but more importantly, for accounting and finance professionals, who are included in this category. Professional and business services has three categories: professional, scientific and technical services; management of companies and enterprises; and administrative and support and waste management and remediation services. This sector recovered quickly from the pandemic-induced downturn and adapted well to remote work. Employment for this sector grew by 5.2% (22,400 jobs) in 2021 and is expected (when final numbers come in sometime in early 2023) to grow another 7.3% in 2022. The sector is estimating 4.2% growth in 2023, bringing the total number of jobs in Colorado to 506,100.
- Colorado is economically competitive. With above-average growth in GDP, income and employment, Colorado is positioned well for 2023. The state’s GDP increased 3% year-over-year in Q2 2022, ranking Colorado 7th in the country. Year-over-year employment grew 4.2% in October 2022—the 7th fastest nationally.
- Colorado’s unemployment is below the national rate. In October 2022, Colorado’s unemployment rate was above the 3.4% average of the 50 states at 3.6%. However, it is below the national rate of 3.7%.
While Colorado’s economy remains strong as we start 2023, there are plenty of factors potentially of concern and many unknowns. Here at TGRP Solutions, we’re still seeing demand for qualified, talented professionals in accounting and finance—both full-time employees and consultants. The best employers in Denver still need great accountants and finance professionals, and our team of professional recruiters is here to support those clients in 2023 and beyond.
Accounting Recruiters & Professional Staffing Services for Denver Professionals
If you’ve been struggling to fill an open accounting and finance role or are in need of additional accounting and finance consulting support for a special project or period of growth, it might be time to consider working with accounting recruiters who know the Denver job market well. Our Denver-based team of accounting and finance recruiters are happy to help your accounting or finance department staff up so you have the people in place to achieve your 2023 objectives.
We look forward to helping your company succeed and showing you how TGRP is different than other recruiter firms in Denver!