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Rural Colorado towns have historically had a boom or bust character due to their dependence upon a place-based economy. To achieve an economy that is balanced and sustainable it is important to nurture diversity of industries within the community. To help quantify this diversified strategy, if the top three industry sectors in any community represent more than 50% of its revenue and employment sources, the community may be at risk for being too dependent upon a limited number of industries. It is important to look at the economic section of the Index from three vantage points:
1.Economic Diversity - the power to exist/succeed in areas outside of any one segment.
2.Affordability - What is the cost-of-living in our community?
3.Strength of the Industrial Base - change in personal income of the residents of the community factor into a community over time.

Observations:
This is the third year the Composite Economic Livability has been calculated. Of the 10 comparable counties Pitkin retained the ranking of 1st. Summit County because of its lack of diversity of income and employment sources and a 80%+ decline in new residential construction values has now become the lowest in economic livability.
Both La Plata and Gunnison counties have experienced improvements in their overall economic livability since the baseline was established in 2008.
Although Routt County has experienced a decline in overall economic livability during the 3rd period its ranking compared to the other mountain counties is third. This represents a decline in ranking from 2nd to 3rd. The rate of decline in Routt County from the baseline year has been the greatest among the comparable counties. Summit County has experienced the second greatest rate of decline. A majority of Routt County's decline can be attributed to the rapid decline in new residential construction values from 2008 to 2009. With the exception of Summit County, Routt County saw the largest decline in new residential construction values. Routt County's per capita income ranking and diversity of employment and income sources helped temper the declines experienced in new residential construction values.