The Pueblo area had the highest jobless rate in Colorado at the end of 2008, while the Grand Junction region had the lowest, according to a new report.

Pueblo's unemployment rate rose to 7.4 percent in December from 5.5 percent a year earlier, and Grand Junction's increased to 4.6 percent from 3.5 percent, the U.S. Department of Labor estimated.

Denver's jobless rate climbed to 6.3 percent from 4.4 percent. That compares with a 7.1 percent U.S. rate. Those figures are not seasonally adjusted.

Colorado's economy took a turn for the worse at the end of 2008, seeing a string of year-over- year job gains snapped. Some economists believe that Colorado, which has weathered the downturn better than most states, followed the nation into a recession late in the year.

Among the companies in Colorado that have trimmed payroll are National Hirschfeld, Vail Resorts, Level 3 Communications, Sun Microsystems and Janus Capital.

The Denver-Aurora metro area accounted for a significant portion of the lost jobs in the past couple of months.

The Denver area had 11,500 fewer jobs in December compared with a year earlier, a 0.9 percent decline.

The Colorado Springs area experienced a 1.6 percent drop in employment as the number of jobs fell by 4,200, according to the U.S. Department of Labor.

Colorado's housing market hasn't been hit as hard, and relative strength in sectors such as energy and aerospace have offset weakness in other spots.

While private education and health care are current bright spots in the local economy, the state is grappling with the same challenges facing the nation.

Forty metro areas across the country recorded jobless rates of at least 10 percent in December.

patonj@RockyMountainNews.com or 303-954-2544

Unemployment rates by metro area

Area December 2007 December 2008

Boulder 3.7 percent 4.8 percent

Colorado Springs 4.9 percent 6.9 percent

Denver-Aurora 4.4 percent 6.3 percent

Fort Collins-Loveland 3.7 percent 4.9 percent

Grand Junction 3.5 percent 4.6 percent

Greeley 4.5 percent 6.3 percent

Pueblo 5.5 percent 7.4 percent