The Space Economy Brings New, High-Paying Jobs to Colorado—but Only to the Select Qualified
Colorado is a hub for advanced careers in the space and defense industry, but what does this mean for the local talent pool?
The new space economy is all about scientific discovery, satellites and software. This highly technical and specialized industry is projected to reach a global net worth of $1.8 trillion within the next decade. The United States dominates this industry, responsible for an estimated 60% of total worldwide economic activity with the state of Colorado playing a crucial role in this leadership.
Beyond launching spacecraft and conducting outer-atmosphere exploration, the space industry predominantly involves satellite operations and surveillance, data storage and communication and global defense. As a broad reliance on cyber security and digital operations is increasing across organizations of all sizes around the world, the demand for highly skilled and specialized workers in this industry is rapidly growing.
While Colorado boasts one of the nation’s densest talent pools of educated and specialized employees making the region appealing for space companies to grow in, the workforce is largely imported from other states. This divide between imported versus homegrown talent is what economists call “the Colorado Paradox.” While the state is great at importing educated workers, it faces economic challenges if it can’t elevate its native talent pool.
Colorado is the nation’s second-largest space and aerospace economy behind California. Thanks to current state-sponsored tax credits, corporate incentives and an existing infrastructure, the sector saw 32% growth from 2017 to 2022 with a $4 billion payroll shared between some 37,000 employees. That number extends to more than 100,000 when auxiliary positions are included.
What was once a sector reserved strictly for government investment and operations is now being dominated by privately held companies. In 2022, data shows private space companies employed nearly 400,000 people in the United States with that number increasing year over year.
Colorado Springs, Colorado’s second-largest city, is a key hub in what some economists call the “Silicon Valley of Space.” Located 70 miles south of Denver, it is home to over 250 private space and aerospace companies, contributing more than $3 billion annually to the local economy and holding an 8% share of the national GDP.
Morgan Alu, Director of International Development special projects at the Metro Denver Economic Development Corporation and co-leader of the Colorado Space Coalition explained that the state offers generous economic incentives to encourage business establishment and growth in the state, including job growth tax credits and Strategic Fund incentives. This helps new companies establish themselves in the region or for existing companies to relocate or expand. Attracting businesses and creating strong jobs in this industry to further Colorado as a “space state” is a high priority for the local government—and it’s working.
Omni Federal, a leader in the space and innovative technologies sector and private DoD contractor, announced 500 new jobs coming to Colorado Springs with the opening of their new office in April of 2024. According to a public release from Omni Federal, the average salary is estimated to be $150,000 a year—238% higher than the average pay in surrounding El Paso County.
To meet the growing workforce demand and take advantage of the economic opportunities provided by the space industry, many skilled workers moved into the state to fill crucial roles in these companies.
“Colorado is what we call an ‘and market,’” said Alu. An “and market” means that the state is viewed as an attractive area to both live and work. It’s an easy sell for employers and employees alike to relocate to.
Census data shows a 15% growth between 2010 and 2020 in Colorado Springs. Between 2021 and 2022, the city outpaced other metropolitan areas with a 0.91% increase compared to a 0.37% growth rate in Los Angeles in the same year. Nearly a quarter of a million people moved to Colorado in 2022 from other states, namely California, Texas and Florida.
“We’re really good at importing talent,” said Alu, explaining that Colorado offers a high quality of life to those who relocate to the state for work, particularly in highly educated, high-paying fields like the space industry.
As of 2024, statistics from the Lumina Foundation's A Stronger Nation reveal that Colorado has replaced Massachusetts as the highest-ranking state for national concentration of talent with more than 60% of the state’s working adult population holding a degree beyond high school.
“A lot of that is carried by folks that we've recruited to Colorado from other states, so not necessarily a product of our education system,” said Jessica Kostelnik, senior policy advisor of workforce with the Office of the Governor. While the state has several renowned universities, Colorado still ranks one of the lowest nationally in high school graduation rates. “It's something that we're working on,” said Kostelnik.
This “Colorado Paradox” will prove a challenge to the state’s economic stability if left unchecked. Helping students become aware of and inspired by career opportunities early on is a priority for local government and businesses alike. Initiatives in the community and school districts are taking strides to combat the gap in education and eligibility in Colorado’s future workforce.
One such initiative is the youth apprenticeship program by CareerWise, a Colorado-based non-profit organization where participants engage with opportunities that can introduce and prepare them for life-changing career options. This means hands-on experience with business leaders and mentors when students are at an early age and might not know what they want to do with their lives or how to think ahead. It’s something being heavily invested in by the local government to promote the next generation of Coloradans.
“CareerWise Colorado won a RISE grant to engage with Colorado Space Coalition, the Colorado Community College System and Cherry Creek School District to design, implement and promote an industry-aligned, registered apprenticeship pathway into aerospace careers,” said Kostelnik. Launched in 2020, the RISE (Response, Innovation, and Student Equity) grant funds more than $30 million in initiatives aimed at the school districts and education systems in Colorado.
Positions such as those offered by Omni Federal and similar companies frequently require higher education and specialized degrees or certifications that can be a barrier to workforce entry. Additionally, they frequently require employees to hold active security clearances.
State economic data reveals that much of the recent growth in Colorado Springs’s workforce has come from government contractors with the U.S. Department of Defense. While many of these space and aerospace companies are privately held, the work they do is tied to projects on government contracts in association with branches of the military.
Colorado has a long history of serving as a leader in the space and defense sector. For more than 70 years, the state has boasted a strong presence in aerospace innovation, defense and cyber technology. In addition to a high concentration of aerospace and technology companies, Colorado plays host to five strategic commands and several other military installations including the United States Space Command, the headquarters of the U.S. Space Force (USSF).
Due to the nature of the work being performed by space companies tied to the defense sector, the mandate to hold government issued security clearances affect a vast majority of industry roles from high-level managers to administrative or even custodial staff, creating barriers to entry for many.
To be eligible for security clearance, the candidate must have a clean record, free from any criminal charges including arrests, DUIs or DWIS and any drug charges. Additionally, once obtained, maintaining a security clearance requires a strict code of conduct prohibiting all drug use and excessive alcohol consumption for the holder to maintain their status and furthermore, their employment. Kostelnik said that informing students and making potential industry recruits aware of this stipulation is a big priority in the state’s workforce development efforts.
To address this and further combat the “Colorado Paradox,” the Teacher Externship Program for Science Technology Engineering and Math Disciplines has been bolstered by the Colorado Department of Labor & Employment (CDLE). Created by House Bill 23-1198, this program provides work-based learning opportunities for public school teachers in the K-12 system. It is designed to expand the applied and practical knowledge of school teachers in the STEM (Science, Technology, Engineering and Mathematics) field to, in turn, better develop students. An emphasis on understanding government-issued security clearance is a primary focus in the training.
“We're working on some security clearance curriculum to embed it into every related CTE (Career & Technical Education) pathway in Colorado,” said Kostelnik. “A lot of our students don't really know that a lot of the aerospace jobs require clearance, and so then they're not prepared by the time they get to a potential job opportunity to go through a clearance process.”
So far, Colorado’s initiatives have seen success in their establishment and early growth, but the state is playing a long game when it comes to measuring meaningful results. Colorado is betting big on the future of the space economy and its local workforce to continue to thrive and fulfill the demands of the growing industry.
Currently, the space and defense sector accounts for more than 40% of Colorado Springs’ local economy and is steadily growing. The challenge Colorado faces now is cultivating a workforce to keep up with the industry’s demands. Competition in the sector is very high, but state leaders are optimistic
“The goal has been to try to increase the visibility of opportunities in space and to get people excited to work in the space industry,” said Kostelnik. As the sector grows, Colorado is poised to pave a pathway for workforce development to serve its local community and the greater global efforts of the industry.
“We expect that the global space economy will rapidly expand in the coming decade and beyond,” said Olivier de Weck, Professor of Astronautics and Engineering Systems at the Massachusetts Institute of Technology (MIT). While competition to enter the industry is tight and the requirements to qualify are high, opportunities abound.
Companies from startups to established legacy corporations are growing and hiring workers of all backgrounds. It’s a prime opportunity for a willing and motivated workforce. “They need administrative staff. They need cyber security staff. They need HR staff,” said Kostelnik. This is the message the state wants to get future candidates excited about. “You could do any job,” continued Kostelnik. “But you could do it for space.”
Graduate journalism coursework, Harvard University / 2024
