KC Fed: Rocky Mountain Region Payrolls to Flatline in 2026

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The latest issue of the Rocky Mountain Economist from the Federal Reserve Bank of Kansas City reports that employers in the Colorado-Wyoming-New Mexico region expect payrolls to remain stable in 2026. According to the results of the most recent Kansas City Fed Manufacturing and Services Surveys (November 2025), 30% of the respondents expect to increase payrolls next year, while 31% expect to reduce payrolls. This is a notable change from the statistics reported a year ago, when 50% of employers expected to increase headcount and only 12% anticipated reductions. Additionally, the surveys found that employers in the region no longer feel the need to increase wages to attract talent. Given the survey results, the economists at the Kansas City Fed conclude that “employment in the region has less momentum going into 2026 than at this time last year”.

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