New Mexico

New Mexico’s seasonally adjusted unemployment rate was 6.6 percent in December 2011, up slightly from 6.5 percent in November but down from 8.6 percent a year ago. The national unemployment rate dropped to 8.5 percent.

The rate of over-the-year job growth, comparing December 2011 with December 2010, was 0.9 percent, representing an increase of 7,400 jobs. New Mexico has now posted seven straight months of over-the-year job growth, following a sustained period of losses that began in November 2008. The employment survey showed seven industries adding jobs, five losing jobs, and one unchanged from a year earlier.

The largest private-sector industry group, educational & health services, continued to add a large proportion of the new jobs. This fast-growing group of firms, dominated by large health care providers, gained 4,300 jobs over the year, growing 3.5 percent.

Retail trade has recovered from previous losses to report 3,700 additional jobs, while wholesale trade posted gains totaling 1,800 jobs. Employment also increased over the year in financial activities (up 2,800 jobs), mining (up 2,400 jobs), leisure & hospitality (up 1,400 jobs) and manufacturing (up 100 jobs).

The professional & business services industry reported employment that was unchanged from a year earlier. This marks improvement from the losses reported for most of 2011.

The remaining four private-sector industries each recorded declining employment. Construction was down 6,000 jobs over the year. Two industries—information and transportation, warehousing & utilities—each shed 200 jobs from their previous-year totals, while the miscellaneous other services category was down 1,400 jobs.

Government employment registered a net loss of 1,300 jobs over the year, with a small gain in state government (up 400 jobs) only slightly offsetting much larger losses at the federal (down 800 jobs) and local (down 900 jobs) levels. The government sector posted negative over-the-year growth for all but one month in 2011.

Albuquerque MSA

The seasonally adjusted unemployment rate for the Albuquerque MSA edged up to 7.0 percent in December 2011 from 6.9 percent in November, marking its first increase in more than a year. The civilian labor force expanded for the fourth consecutive month, as both employment and unemployment increased in December. These over-the-month changes may indicate that discouraged workers have begun returning to the labor force, with still-tepid job growth insufficient to fully accommodate their reentry. The civilian labor force remained well below its year-earlier level, however, when the unemployment rate stood at 9.0 percent.

December nonfarm payroll employment was down 1,700 jobs or 0.5 percent over the year in the Albuquerque MSA, where job growth again lagged that of the state as a whole (up 0.9 percent) and the three other metropolitan areas (Santa Fe, up 1.6 percent; Las Cruces, down 0.4 percent; and Farmington, down 0.4 percent). Contraction in both government (down 1,000 jobs or 1.2 percent) and the private sector (down 700 jobs or 0.2 percent) pushed the Albuquerque MSA to its thirty-ninth consecutive month of year-over-year losses. Employment increased in four industries, decreased in six, and was unchanged in two.

Atypically large over-the-month gains in September and November sharply increased educational & health services employment from the levels that persisted through the first two-thirds of 2011. The industry posted an over-the-year gain of 1,900 jobs or 3.5 percent for December, more than doubling combined job increases for the other three expanding industries. The late-year gains have again boosted educational & health services above professional & business services to the top spot in the ranking of the area’s largest private industries.

Leisure & hospitality posted a modest over-the-year increase of 600 jobs or 1.6 percent, down from 3.7 percent the past two months, after a large over-the-month dip between November and December. This supersector, comprising NAICS 71 (arts, entertainment, and recreation) and NAICS 72 (accommodation and food services), recorded 2011 annual average employment growth of 3.7 percent (based on preliminary December data), its largest increase since 2006. Leisure & hospitality employment rebounded strongly in 2011, following a large 4.1 percent loss in 2009 and an incremental 0.3 percent gain in 2010.

Information added 200 jobs, up 2.4 percent from a year earlier. Year-over-year gains for both November and December limited the industry’s 2011 annual average loss to 4.0 percent, following losses of 5.6 percent in 2010 and 4.3 percent in 2009. Information industry employment has in recent years been subject to large fluctuations based on activity in its motion picture and sound recording component. Wholesale trade, up 100 jobs or 0.8 percent, was the final industry to post an over-the-year increase in December.

Preliminary December 2011 data show construction down 2,600 jobs or 12.5 percent from a year earlier. The industry has registered an over-the-year loss for each month since January 2007, equaling five full years of negative growth, with December 2011 employment of 18,200 marking the lowest level since June 1993. Construction posted respective 2007–2011 annual average losses of 2.9 percent, 7.2 percent, 15.5 percent, 10.0 percent, and 11.3 percent, resulting in a decline of 12,300 jobs or 39.3 percent from the industry’s 2006 employment total. The recent groundbreaking on residential development at Mesa del Sol, with homes expected to be available for sale in early spring 2012, was a welcome bit of news for a construction industry that has struggled to find a bottom.

Government was down 1,000 jobs or 1.2 percent for December, finishing 2011 with eight consecutive months of year-over-year losses and its first annual average employment decline during the current series. Losses were steepest at the local level, down 900 jobs or 2.1 percent, with federal government, down 200 jobs or 1.3 percent, also trending lower. State government inched up 100 jobs or 0.4 percent. Despite the recent losses, government employment represented 22.6 percent of the 2011 annual average nonfarm total, its fourth consecutive annual increase and highest level during the current series. In the six years prior to the onset of the national recession, government employment averaged 20.1 percent of the nonfarm total.

Employment in professional & business services was down 300 jobs or 0.5 percent, slipping to its lowest December level since 1998. Formerly the Albuquerque area’s largest private-sector industry, professional & business services contracted by a combined 7,900 jobs or 12.3 percent during 2009 and 2010, before shedding another 400 jobs or 0.7 percent in 2011. Because this industry encompasses such a wide variety of activities in its three sectors—professional and technical services, management of companies and enterprises, and administrative and waste services—its return to growth will be an important indicator that recovery has taken hold in the area economy.

The financial activities industry was down 300 jobs or 1.7 percent over the year, with December employment of 17,300 matching the industry’s 2011 annual average. Financial activities was the only private-sector industry to post a steeper annual average employment decline in 2011 (negative 3.2 percent) than in 2009 (negative 2.7 percent). Retail trade also posted a narrower loss in December, down 200 jobs or 0.5 percent, while miscellaneous other services slipped by 100 jobs or 0.9 percent. Manufacturing and transportation, warehousing & utilities both remained at their December 2010 employment levels.

The accompanying chart shows the Albuquerque area’s 2011 over-the-year employment change by month for the private-sector industries and government, along with the total nonfarm growth rate.

Las Cruces MSA

The seasonally adjusted unemployment rate for the Las Cruces MSA inched up to 6.8 percent in December 2011 from 6.7 percent in November, but was down sharply from 8.6 percent a year earlier.

Over the month, Las Cruces MSA nonfarm payroll employment slipped by 100 jobs or 0.1 percent. Private-sector employment was unchanged, with 100-job losses in financial services and professional & business services fully offsetting 100-job gains in retail trade and transportation, warehousing & utilities. The seven remaining private-sector industries—construction, manufacturing, wholesale trade, information, educational & health services, leisure & hospitality, and miscellaneous other services—remained at their November employment levels. Government employment was down 100 jobs at the state level and unchanged at both the federal and local levels.

Over the year, employment in the Las Cruces MSA was down 300 jobs or 0.4 percent, as a 500-job private-sector gain was erased by an 800-job government loss. Employment increased in four private-sector industries (retail trade, up 200 jobs or 2.8 percent; educational & health services, up 200 jobs or 1.7 percent; wholesale trade, up 100 jobs or 8.3 percent; and transportation, warehousing & utilities, up 100 jobs or 5.9 percent), decreased in one (manufacturing, down 100 jobs or 3.7 percent), and was unchanged in six (construction, information, financial activities, professional & business services, leisure & hospitality, and miscellaneous other services). The government sector continued to be a drag on the area economy, down 800 jobs or 3.6 percent over the year, will all three components shedding jobs: state, down 400 jobs or 4.3 percent; federal, down 300 jobs or 7.3 percent; and local, down 100 jobs or 1.1 percent. The accompanying chart shows the Las Cruces area’s 2011 over-the-year employment change by month for the private-sector industries and government, along with the total nonfarm growth rate

Santa Fe MSA

The seasonally adjusted unemployment rate for the Santa Fe MSA was unchanged in December 2011 from a revised 5.3 percent in November, but down 2.0 percentage points from 7.3 percent a year earlier.

Over the month, Santa Fe MSA employment fell by 100 jobs or 0.2 percent, with a 200-job loss in the private sector more than offsetting a 100-job gain in government. Two private-sector industries posted increases (leisure & hospitality and retail trade, each up 100 jobs or 1.1 percent), three posted decreases (educational & health services, down 200 jobs 1.8 percent; construction, down 100 jobs or 3.6 percent; and professional & business services, down 100 jobs or 2.3 percent), and the remaining six were unchanged from November (manufacturing; wholesale trade; transportation, warehousing & utilities; information; financial activities; and miscellaneous other services.) The 100-job gain in government came at the state level, with employment flat over the month at both the federal and local levels.

Over the year, Santa Fe MSA employment expanded by 1,000 jobs or 1.6 percent. Four private-sector industries recorded gains (leisure & hospitality, up 800 jobs or 9.1 percent; retail trade, up 400 jobs or 4.6 percent; educational & health services, up 400 jobs or 3.8 percent; and financial activities, up 100 jobs or 3.8 percent), three registered losses (construction, down 300 jobs or 10.0 percent; information, down 100 jobs or 10.0 percent; and miscellaneous other services, down 100 jobs or 3.4 percent), and the remaining three were unchanged (manufacturing, wholesale trade, and professional & business services). Government employment fell by 200 jobs or 1.2 percent, with the federal and state levels each down 100 and the local level unchanged from a year earlier. The accompanying chart shows the Santa Fe area’s 2011 over-the-year employment change by month for the private-sector industries and government, along with the total nonfarm growth rate.

Farmington MSA

The seasonally adjusted unemployment rate for the Farmington MSA was unchanged in December 2011 from a revised 6.6 percent in November, but down sharply from 9.5 percent a year earlier.

Over the month, the Farmington MSA posted a net employment decline of 600 jobs or 1.2 percent, with the private sector down 700 jobs or 1.9 percent and the government sector up 100 jobs or 0.8 percent. Private service-providing industries shed 500 jobs, down 1.9 percent, while goods-producing industries trimmed 200 jobs, also down 1.9 percent. The government increase came entirely at the local level, up 100 jobs or 1.1 percent, as federal and state payrolls were unchanged from November.

Over the year, total nonfarm employment in the Farmington area fell by 200 jobs or 0.4 percent, as a government sector gain of 400 jobs or 3.5 percent was not enough to offset a private-sector loss of 600 jobs or 1.6 percent. Private service-providing industries accounted all of the private-sector loss, with the goods-producing industries holding steady at their previous-year total. Local government was up 400 jobs or 4.3 percent over the year, while federal and state payrolls were unchanged. The accompanying chart shows the Farmington area’s 2011 over-the-year employment change by month for the private-sector industries and government, along with the total nonfarm growth rate.

Updated: January 26, 2012

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Updated: 07-Feb-12

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Updated: February 7, 2012

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February 7, 2012

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Updated: February 7, 2012

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Updated: February 7, 2012

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Updated: February 7, 2012

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The latest economic news gathered from published articles, government documents, private- and public-sector news releases, and reports from local New Mexico Workforce Connection Centers. In most cases, no attempt is made to verify accuracy of information.

Statewide

The Job Training Incentive Program (JTIP) board at its December meeting approved $1,198,930 in funding to support 191 positions in New Mexico. The December recipients were Tempur-Pedic, Bernalillo County, $440,029 for 51 jobs; Bladewerx, an instrumentation and software engineering firm, Rio Rancho, $8,104 for one job; General Mills, Albuquerque, $157,430 for 64 jobs; Central New Mexico Community College (to provide training for JTIP recipients at General Mills), Albuquerque, $40,960 for 64 jobs; Herbs Etc., an herb supplier and manufacturer, Santa Fe, $9,128 for four jobs; Hewlett-Packard, Rio Rancho, $474,015 for 58 jobs; Liquid Common Inc., a digital marketing and software services company, Albuquerque, $48,200 for eight jobs; and NanoCool, a manufacturer of temperature-controlled packaging, Albuquerque, $21,064 for five jobs.

Heavy mountain snowfall in December brought New Mexico some of the best early ski conditions in the country, with most resorts in the state reporting 40-plus-inch bases heading into the Christmas holiday. George Brooks, executive director of Ski New Mexico, a nonprofit trade organization that promotes the state’s ski industry, said his group was working with the New Mexico Tourism Department to spread the word about the excellent conditions. This year’s strong start is welcome relief for the state’s resorts after a disappointing ski season last year.

Central Workforce Investment Area

Albuquerque Area, Bernalillo County:

Home improvement retailer Lowe’s announced plans to open a customer support center in the 60,000-square-foot facility at 6301 Jefferson NE once occupied by America Online and more recently by Convergys. Lowe’s officials expect the new center to employ 250 by March 2012 and 600 by the end of 2013. “The jobs will include from site director all the way down to agents who will be operating on the telephone and working email and social media,” said Don Easterling, the company’s vice president of contact centers. The operation will provide four basic categories of service: customer care, store support, sales, and repair.

The 800,000-square-foot Tempur-Pedic plant on Albuquerque’s West Side, billed as the largest mattress factory in the world, is expanding operations and will soon add about 100 employees, including 51 in January and February. The new jobs will be in management, engineering, administration, warehousing, and production. Tempur-Pedic, which opened its Albuquerque factory in 2007, cited the quality of the workforce and the incentives it receives as reasons for the expansion. The factory currently employs 123.

A recent groundbreaking signaled the start of residential development at Mesa del Sol. The economic downturn and weak housing market prompted a delay in plans that originally called for construction to begin in 2009, with residents occupying 100 homes by early 2010. The first homes will now be available for sale in early spring 2012. Mesa del Sol is a 13,000-acre, mixed-use development located south of the Sunport that is expected to eventually include more than 37,000 homes, making it the largest master-planned community in the area.

Rio Rancho Area, Sandoval County:

Stream Global Services is expanding its Rio Rancho call center and plans to add 300 new positions. The facility provides warranty and sales support for a large telecommunications provider. According to the company’s website, Stream opened its Rio Rancho location in 2004 and is now one of the city’s largest employers. Stream Global Services pays employees an hourly rate, plus an uncapped commission for sales positions, and offers full benefits.

Eastern Workforce Investment Area

Clovis Area, Curry County:

During a legislative luncheon at the Clovis Civic Center, Frank Barbera, director of reliability assurance for Tres Amigas, announced that environmental studies for the project had been completed, with approval contingent on the final design currently being prepared. Tres Amigas expects to break ground in 2012 on its power superstation, which could be fully operational in late 2014. According to the company’s website, “Tres Amigas is focused on providing the first common interconnection of America’s three power grids to help the country achieve its renewable energy goals and facilitate the smooth, reliable and efficient transfer of green power from region to region.”

Artesia Area, Eddy County:

Remuda Energy Transportation LLC, a subsidiary trucking firm of Yates Petroleum Corporation, opened for business in Artesia to support the oil and gas company, which has increased its drilling activities in southeastern New Mexico. Remuda has 14 trucks each capable of hauling 180 barrels per trip, and J.B. Smith, its general manager, expects the fleet to haul four to six loads per day. The company was set to begin hauling loads with three trucks before becoming fully operational by February. Smith estimated that Remuda will create 20 to 25 jobs in the area.

Hobbs Area, Lea County:

International Isotopes held a conference call in mid-December to discuss its financial status and provide additional information related to its planned $125 million uranium deconversion plant 15 miles west of Hobbs. Steve Laflin, International Isotopes’ president and chief executive officer, said negotiations were under way with two companies that would buy fluorine products from the Lea County facility, which is expected to employ 125. Those companies would have offices at International Isotopes’ 640-acre site, bringing an as-yet-undetermined number of additional jobs. Laflin expects the Nuclear Regulatory Commission to issue a license for the plant by June.

Portales Area, Roosevelt County:

Depressed market conditions prompted temporary closure of the Abengoa Bioenergy Corporation’s ethanol plant in Portales, according to Abengoa’s Executive Vice President Chris Standlee. The plant, with its capacity to produce 30 million gallons of ethanol per year from grain sorghum, employed about 45. Standlee said the company has a maintenance plan in place that will allow a quick restart of operations when conditions improve. The Portales facility, one of six Abengoa ethanol plants in the U.S., had been operating for about a year after having previously been closed for almost two years because of unfavorable economic conditions.

Northern Workforce Investment Area

Grants Area, Cibola County:

The local New Mexico Department of Workforce Solutions office in Grants closed November 30 because of budget constraints. The state office had for many years assisted residents and businesses with employment and unemployment services. Staff routinely helped clients with a variety of job-seeking activities, including resume writing, interviewing, and career exploration. Residents seeking assistance are encouraged to call the Gallup office at (505) 863-8884 or go online at www.dws.state.nm.us. Unemployment insurance claims can be filed at the same website or by calling (877) 664-6984.

Eagle Nest and Springer Areas, Colfax County:

The village of Eagle Nest and the town of Springer each received the New Mexico Economic Development Certified Community Initiative (CCI) designation, which qualifies a community to receive contractual funding up to $5,000 per year for three years for special projects (such as workforce studies and economic development impact analyses) intended to create jobs. The initiative emphasizes the importance of recruitment, retention and expansion, and start-up activities. The CCI designation requires a community to meet nine mandatory requirements and two elective requirements, all focused on job creation and economic development. Close to 40 New Mexico communities have earned the CCI designation.

Farmington, San Juan County:

An economic development steering committee is forming a new organization tentatively called the Four Corners Development Foundation that would likely replace San Juan Economic Development Service as the county’s primary economic development entity. The new foundation, to be funded primarily by private contributions—in contrast to the mostly government-funded SJEDS—would, among other goals, seek to diversify the area’s economy, which has long been heavily dependent on energy production. The organization, which would initially operate on a budget of about $500,000, plans to eventually raise enough funds for a $4 million annual budget, far exceeding the SJEDS budget of about $100,000.

Taos Area, Taos County:

Blue Sky Energy LLC is developing and financing a 5,400-panel, 1.5-megawatt solar energy project to be located on 23 acres near the Taos County Landfill. PPC Solar will build the photovoltaic array, and Kit Carson Electric Cooperative approved a conditional purchase agreement to buy the power it produces over the next 25 years. If all permits are approved, Blue Sky expects construction to begin in spring 2012, with the facility coming online by July. Blue Sky Energy and PPC Solar are both Taos-based companies.

Southwestern Workforce Investment Area

Las Cruces Area, Doña Ana County:

A third Las Cruces Walmart location may open in late 2012 on the East Mesa at the corner of Northrise Drive and Rinconada Boulevard, according to Christine Logan, economic development administrator with the city of Las Cruces. “More than one year ago, the zoning architect was told to hold off, probably because of the economy,” she said. “A Walmart of the East Mesa was always going to happen. When it was going to happen was the question.” The store size has not yet been announced, but Walmart discount stores (about 95,000 square feet) typically employ about 225 associates, while supercenters (about 185,000 square feet) normally require 350 or more.

The U.S. Department of Housing and Urban Development (HUD) approved a $2 million grant for Doña Ana County intended to improve the quality of life for its residents. The county was one of only 29 areas nationwide to receive a three-year HUD planning grant this year. Spending specifics have not yet been determined, but top priorities are “land, transportation, community facilities, and housing,” according to Roger Hedrick, deputy director of the county’s Community Development Department. The goal of these HUD planning grants, as described in the press release announcing 2011 recipients, is “to help communities and regions improve their economic competitiveness by connecting housing with good jobs, quality schools and transportation.”

Akela Area, Luna County:

The U.S. Department of Interior’s Bureau of Indian Affairs granted the Fort Sill Apache Tribe 30 acres for a reservation in Akela, New Mexico, 18 miles east of Deming on Interstate 10. This is the latest development in the tribe’s lengthy battle to gain reservation status and build a casino at the site. Fort Sill Apache Chairman Jeff Haozos stated that the tribe could open a small operation employing 80 people in an existing facility within 45 days of receiving gaming approval. The casino would then expand to employ 300 employees within six months of that initial period. The state Gaming Control Board has argued that the site does not qualify for gaming, however, and the Fort Sill Apaches are awaiting a ruling from the National Indian Gaming Commission that will determine subsequent action on the planned casino.

Upham Area, Sierra County:

Spaceport America officials approved a pared-down plan for its vertical launch area, leaving more room in the budget for other projects, such as paving a southern route to the spaceport and building a visitor’s center. The proposal calls for about $3 million to be spent on a second rocket launch pad, along with water, wastewater, and other infrastructure components. Twelve vertical launches have so far taken place at the $209 million Spaceport America site. Ben Woods, a spaceport board member and also a vice president at New Mexico State University, noted that while the vertical launch facility is important, Spaceport America’s main business income will flow from the horizontal launch facility that will support Virgin Galactic’s program. Virgin plans to launch a two-vehicle suborbital spaceflight sometime in 2013.

Updated: February 7, 2012

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Updated: February 7, 2012

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