The U.S. labor market has shown a consistent, albeit sometimes turbulent, recovery since the 2020 downturn, with national private-sector payrolls recently surpassing pre-pandemic highs. However, a closer look at regional data from the latest ADP Employment Report reveals that the Mountain Region is not just recovering; it’s setting a formidable pace for economic growth, significantly outperforming the national average.
The National Picture: A Steady but Bumpy Road to Recovery
According to the ADP National Employment Report, which analyzes payroll data from over 25 million U.S. employees, the country has seen a steady increase in private-sector jobs since the sharp decline in early 2020. The national trendline shows a V-shaped recovery, with total employment climbing back to its previous peak by early 2022 and continuing on an upward trajectory into 2025. As of the latest data, U.S. private payrolls stand at approximately 136 million. While the overall trend is positive, the growth has been subject to seasonal fluctuations and periods of slower gains, reflecting a complex national economic environment.
Mountain Region: A Story of Accelerated Growth
In stark contrast to the national trend, the Mountain Region (comprising states like Colorado, Utah, Arizona, and others) has demonstrated remarkable economic resilience and accelerated growth. The region’s employment chart shows a much steeper V-shaped recovery. While it experienced a similar sharp dip in 2020, the rebound was swifter and more robust.
By the end of 2021, the Mountain Region had already surpassed its pre-pandemic employment peak and has since continued on a steeper growth path than the rest of the country. From a low of around 8.5 million jobs in mid-2020, the region's payrolls have surged to over 10.2 million by early 2025. This trajectory indicates that the Mountain Region's economy is not just recovering but expanding at a significantly faster rate than the U.S. as a whole.
Key Takeaways
The side-by-side comparison of these two trends illustrates a clear narrative: while the entire U.S. is on the road to economic recovery, the Mountain Region is in the express lane. The region's ability to bounce back more quickly and sustain a higher rate of job growth suggests strong underlying economic fundamentals, potentially driven by industry diversification, population growth, and business-friendly policies. This outperformance positions the Mountain West as a key engine of national economic expansion in the post-pandemic era.