Monthly News ReleaseEmployment & UnemploymentSeptember 21, 2011Complete News Release in PDF formatPress Release SummarySchedule of Publication
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FOR MORE INFORMATION:Contact: Joy Forehand (505) 250-3926 |
New MexicoNew Mexico’s seasonally adjusted unemployment rate was 6.6 percent in August 2011, down from 6.7 percent in July and 8.5 percent a year ago. The national unemployment rate remained at 9.1 percent. The decline in New Mexico’s unemployment rate for August was the sixth in a series since the rate peaked at 8.7 percent at the start of the year. This drop was again the result of workers leaving the labor force rather than an increase in employment. A preliminary analysis of unemployment data shows that if the labor force participation rate (LFPR) had remained steady at pre-recession levels of around 63 percent, the measured unemployment rate would have continued a slightly increasing trend in recent months instead of posting the sharp drop shown by the official numbers. The rate of over-the-year job growth, comparing August 2011 with August 2010, was 0.8 percent, representing an increase of 6,500 jobs. We have now reported three straight months of over-the-year job growth, following a 32-month period of job losses. August data continued the improving trend with further gradual strengthening in many industries. Even though some industries are still holding on to previous losses, the extent of those losses is shrinking in many cases. The recovery likely started a while back, but lack of significant momentum left the state’s job growth rate close to the zero line for over a year. A number of industries are now cautiously adding jobs, but there is still evidence of restraint and the recovery is slow. The current job situation includes seven growing and five declining industries, with one that is unchanged. The educational & health services industry added 7,800 jobs, far more than for any other industry, growing at a 6.7 percent rate since this time last year. This industry seems to always do well, slowing down during recessions, but never turning negative and losing jobs. As the largest private-sector industry, educational & health services’ consistent growth provides stability for the economy as a whole. Retail trade has made a comeback from previous losses to now report 3,800 additional jobs, while wholesale trade posted gains of 1,500 jobs. The mining industry reported another gain, up 1,800 jobs, following 14 months of losses that ended in 2010. Earlier losses had been as high as 5,000 jobs. The financial activities industry posted a gain of 2,200 jobs following three years of job losses that ended earlier this year. Leisure & hospitality added 300 jobs, up 0.3 percent, while transportation, warehousing & utilities gained 200 jobs, up 0.9 percent. The information industry reported employment levels that were unchanged from last year. This follows many months of reporting negative numbers. The remaining four private-sector industries each recorded declining employment. The professional & business services industry reported employment that was down 6,100 jobs from last year. Construction was down 2,800 jobs over the year, which is especially disappointing when considering the jobs previously lost since 2008, and the miscellaneous other services category lost 500. The manufacturing industry reported employment levels that were down 100 jobs from last year, continuing the mixed performance from earlier this year and following previous steep losses. As the chart below shows, manufacturing employment has taken devastating losses over a sustained period. Government employment registered a net decline of 1,600 jobs from the year-ago total, with job losses reported mainly at the local level. Local government employment dropped 4,100 jobs since this time last year, likely due to different seasonal trends. Federal employment was also down, but just by 100 jobs. State government reported 2,600 additional jobs compared to the same month a year ago. Albuquerque MSAThe seasonally adjusted unemployment rate in the Albuquerque MSA was 7.0 percent in August 2011, down slightly from a revised 7.1 percent in July. The rate was 8.9 percent in August 2010. Further contraction in the area’s civilian labor force (down 0.3 percent, with both the employment and unemployment estimates falling from their July levels) prompted another over-the-month decline in the unemployment rate. The number of unemployed persons peaked in February and fell sharply over the following six months. However, the estimate of employed persons dropped by half a percentage point for the same period, meaning a larger share of the civilian noninstitutional population was no longer actively participating in the labor force. The unemployment rate for August 2011 would have been well over 9 percent if the labor force were the same size it was a year ago. Year-over-year nonfarm payroll employment growth in the Albuquerque MSA remained negative for the thirty-fifth consecutive month at the same time the state as a whole registered its third straight month in positive territory. Part of the reason for this disparity is that mining has been the fastest growing industry in the state of late, with most of the employment gains coming from increased oil and gas activity in southeastern New Mexico. The Albuquerque MSA’s anemic growth has resulted from ongoing weakness in nearly all sectors of the economy. Only three industries recorded over-the-year gains in August, while eight others posted losses and one was unchanged. Leisure & hospitality continued to show surprising strength, up 1,300 or 3.4 percent over the year, far outpacing the two other gaining industries. While a 300-job over-the-month decline dropped its over-the-year gain below 4 percent for the first time in five months, leisure & hospitality remained the only industry to consistently post large job gains through the first eight months of the year. The industry is on pace to finish 2011 with an annual average gain of 3.2 percent, its best performance since a robust 5.5 percent increase in 2006. Employment growth slipped to 0.9 percent in professional & business services, but the industry is so large that this small percentage increase equaled a 500-job gain. Industry employment finally reached a bottom earlier this year after 30 consecutive months of losses and has now registered four straight over-the-year gains. The rebound has so far been tepid, however, with August 2011 employment of 57,000 only slightly above its year-ago level of 56,500, the lowest total for the month since 1998. Educational & health services posted a minimal gain of 100 jobs or 0.2 percent, matching the revised increase for July. The July and August gains followed four consecutive months of over-the-year losses, which represented the industry’s first period of negative employment growth during the current series. Educational & health services was the only private-sector industry to continue adding jobs throughout the recent recession, growing 4.7 percent in 2009 (when the downturn was at its worst), while the other private-sector industries posted a combined loss of 7.9 percent. Construction registered a 500-job over-the-month employment increase for both July and August, reducing its over-the-year loss to 1,900 jobs or 8.6 percent. The industry has now shed jobs for 56 consecutive months and is on track to finish the year with annual average employment below 20,000 for the first time since 1993. Employment was down by over 40 percent earlier this year compared to peak levels from 2006. Few major projects are currently under way, but one, the first phase of Forest City Covington’s development at Mesa del Sol, which will include 250 homes, is expected to create several hundred construction jobs. Financial activities employment has been virtually static in 2011, ticking up from 17,300 earlier in the year to 17,400 in recent months. The industry was down 500 jobs or 2.8 percent over the year for August, marking 17 consecutive months of losses. Employment declined for two full years from December 2007 through October 2009, expanded briefly in early 2010, then slipped back into negative territory in April 2010. Over-the-year job losses will likely narrow through the remainder of 2011, assuming continued stable current employment, because of shrinking employment levels during late 2010. Transportation, warehousing & utilities recorded an unusual 200-job over-the-month loss in August, pushing its over-the-year deficit to 400 jobs or 4.3 percent. This was the industry’s largest employment decline since a period of very steep losses was nearing an end early last year. Retail trade, down 0.5 percent, and information, down 2.4 percent, each shed 200 jobs over the year. Government employment was down 100 jobs or 0.1 percent, with the federal level posting a small decrease and the state and local components remaining unchanged. Federal government job losses diminished in recent months reflecting the dwindling number of temporary census workers still included in the year-ago comparison. Miscellaneous other services, down 0.8 percent, and manufacturing, down 0.6 percent, also lost 100 jobs, while wholesale trade employment was unchanged over the year. The bar graph below shows the employment growth or decline for each industry in the Albuquerque MSA from August 2008 through August 2011. The area was down a total of 28,200 jobs or 7.1 percent for the period, with a small increase in government employment, up 1,400 jobs or 1.8 percent, only slightly offsetting a large decrease in private-sector employment, down 29,600 jobs or 9.3 percent. Educational & health services, up 3,000 jobs or 5.9 percent, was the only private-sector industry to add jobs, while professional & business services, down 9,100 jobs or 13.8 percent; construction, down 8,400 jobs or 29.5 percent; manufacturing, down 5,000 or 22.2 percent; and retail trade, down 3,500 jobs or 7.9 percent, posted the largest declines. Las Cruces MSAThe seasonally adjusted unemployment rate for the Las Cruces MSA was 6.7 percent in August 2011, down from 6.8 percent in July and 8.4 percent in August 2010. Over the month, the Las Cruces area added 1,800 jobs. Government, up 1,500 jobs, accounted for most of the gain as state government, up 700 jobs, and local government, up 900 jobs, each posted education-related increases, while federal government shed 100 jobs. Educational & health services and construction were the only two private-sector industries to increase employment, posting respective gains of 200 and 100 jobs. The remaining nine private sector industries—manufacturing; wholesale trade; retail trade; transportation, warehousing & utilities; information; financial activities; professional & business services; leisure & hospitality; and miscellaneous other services—remained at their July employment levels. Over the year, the Las Cruces MSA was down 100 jobs or 0.1 percent. Private-sector employment was up 200 jobs or 0.4 percent, with just three industries posting gains: educational & health services, up 400 jobs or 3.4 percent; retail trade, up 200 jobs or 2.9 percent; and leisure & hospitality, up 100 jobs or 1.4 percent. Employment levels were unchanged over the year in construction, wholesale trade, financial activities, and miscellaneous other services. Four industries registered declining employment totals: manufacturing, down 200 jobs or 7.1 percent; transportation, warehousing & utilities, down 100 jobs or 5.9 percent; information, down 100 jobs or 11.1 percent; and professional & business services, down 100 jobs or 1.3 percent. The government sector was down 300 jobs or 1.4 percent over the year, with a gain in local government, up 200 jobs or 2.3 percent, partially offsetting losses in federal government, down 300 jobs or 7.0 percent, and state government, down 200 jobs or 2.5 percent. Total government has typically represented about 30 percent of Las Cruces MSA employment, with the August 2011 shares as follows: local government, 12.8 percent; state government, 11.5 percent; and federal government, 5.8 percent. The bar graph below shows the employment growth or decline for each industry in the Las Cruces MSA from August 2008 through August 2011. The area was down 600 jobs or 0.9 percent for the period, with only two industries—professional & business services and educational & health services—posting increases. Government recorded a net decrease as only the federal level added jobs. The area began losing jobs on a year-over-year basis in January 2009 and posted negative growth for 12 straight months before adding jobs once again. Losses returned in March 2011 and have now persisted for six consecutive months. Santa Fe MSAThe seasonally adjusted unemployment rate for the Santa Fe MSA was 5.4 percent in August 2011, down from 5.5 percent in July and 7.1 percent a year ago. Over the month, the Santa Fe MSA added 400 jobs, with a 100-job loss in government partially offsetting a 500-job gain in the private sector. Employment increased in four of the 11 private-sector industries as educational & health services, up 200 jobs (likely in private education), led the way. Leisure & hospitality, financial activities, and retail trade each added 100 jobs. The remaining seven private-sector industries—construction; manufacturing; wholesale trade; transportation, warehousing & utilities; information; professional & business services; and miscellaneous other services—reported employment that was unchanged from July levels. The net decrease in government employment resulted from 100-job declines at both the federal and state levels and a 100-job gain at the local level. Over the year, the Santa Fe MSA was down 100 jobs or 0.2 percent. Educational & health services, up 600 jobs or 6.2 percent, remained the area’s strongest industry. Three other industries also added jobs in August on a year-over-year basis: retail trade, up 300 jobs or 3.5 percent; information, up 100 jobs or 12.5 percent; and financial activities, up 100 jobs or 3.8 percent. Employment declined in miscellaneous other services, down 400 jobs or 11.1 percent; construction, down 100 jobs or 3.3 percent; and professional & business services, down 100 jobs or 2.2 percent. Construction employment growth returned to negative territory after the industry briefly posted year-over-year gains from September 2010 through March 2011. Employment remained unchanged in manufacturing; wholesale trade; transportation, warehousing & utilities; and leisure & hospitality. The government sector continued to be a drag on the Santa Fe economy. Employment was down 600 jobs or 3.6 percent over the year, with each component—federal, state, and local—shedding 200 jobs from its year-ago total. The bar graph below shows the employment growth or decline for each industry in the Santa Fe MSA from August 2008 through August 2011. The area lost 4,600 jobs during the period, with educational & health services the only major industry division to expand employment. Santa Fe MSA employment began contracting in December 2007, briefly expanded from April through July 2008, and then turned negative again through September 2010. Job losses were especially steep in 2009 when area employment contracted by an annual average of 5.7 percent from the 2008 total. Farmington MSAThe seasonally adjusted unemployment rate in the Farmington MSA was 6.7 percent in August 2011, down from 6.9 percent in July and 9.5 percent a year ago. Over the month, Farmington MSA employment remained unchanged from its July level. Gains of 200 jobs in the goods-producing industries and 100 jobs in the private service-providing industries were offset by a loss of 300 jobs in the government sector. All of the government losses came at the local level, possibly from staff reductions in public education. Over the year, total employment in the Farmington area increased by 1,100 jobs 2.3 percent, with private-sector employment growing by 1,000 jobs or 2.7 percent and government employment expanding by 100 jobs or 1.0 percent. Private service-providing industries added 700 jobs, up 2.6 percent, and goods-producing industries gained 300 jobs, up 2.9 percent. The 100-job gain in local government came at the local level, with employment in the federal and state components remaining unchanged from their year-ago levels. Farmington MSA employment declined by 8.4 percent between August 2008 and August 2011 as area employers shed 4,400 jobs. The bulk of the job losses were in the private sector, with government payrolls down by just 100 jobs. Goods-producing industries contracted by 2,600 jobs and private service-providing industries by 1,700 jobs. The net employment decline in government came as local government lost 300 jobs, federal government gained 200, and state government was unchanged. Updated: September 21, 2011 | |
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