(The Center Square) – New business filings in Colorado decreased by 9.7 percent in the second quarter as the secretary of state’s office received 39,464 new entity filings, the office said Thursday. 

The office’s latest Quarterly Business and Economic Indicators report, which was compiled in partnership with the Leeds Business Research Division at the University of Colorado Boulder, found that despite the decrease last quarter, new filings are up 0.5 percent year-over-year.

“While Coloradans’ resilience has been tested, today’s report shows we’re moving in the right direction. Colorado’s economy continues to shine even with uncertainty in the national economy,” Secretary of State Jena Griswold said in a statement. “Our business sector has shown ongoing resilience.”

Overall, the report found that existing business entity renewals and entities in good standing “remained strong” in the second quarter despite businesses facing a “broad set of economic headwinds” like inflation, high interest rates, and supply chain constraints. 

The state has added more than 412,000 jobs since March 2020, the 10th best recovery in the nation, the report noted. 

Despite these gains, four sectors still have employment levels below their pre-pandemic levels: health services, government, education, and hospitality. Meanwhile, unemployment fell to 3.4 percent in June, which is below the national average of 3.5 percent. 

Rich Wobbekind, a senior economist at the Leeds Business Research Division, said the tight labor conditions are becoming a concern for Colorado business owners as the state is projected to add another 210,000 jobs before the end of 2022. 

“Our most recent analysis shows Colorado ranks above average in employment, labor force, income and GDP compared to the rest of the nation,” he said. “Still, the most recent Leeds Business Confidence Index signals business leaders are cautious heading into Q3 and Q4 due to inflation, interest rates, worker shortages and other factors.”