The pandemic created several new challenges for Colorado businesses. Labor shortages and a volatile workforce remain some of the biggest challenges. During the height of the pandemic, businesses laid workers off or close their doors in response to lockdowns and other COVID-19 measures, which led to an alarming increase in unemployment claims. On May 1, 2021, approximately 190,000 Coloradans were filing for continuous unemployment benefit coverage, and the state had already distributed over $9 billion in unemployment benefits since the beginning of the pandemic.[1] The surge in unemployment claims depleted Colorado’s unemployment insurance trust fund (UITF), leading to the need for Colorado to obtain a billion-dollar loan from the federal government to keep the UITF afloat. The deficit subjected Colorado employers to higher unemployment insurance premiums.
[1] Press Release: Update for the Week Ending May 1st: Continued Decline in Initial Claims and Work Search Updates | Department of Labor & Employment (colorado.gov).
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