How ‘balanced’ is New Mexico’s economy? Here’s what the metrics say
New Mexico faces significant challenges in economic rankings, highlighting ongoing struggles to balance the needs of businesses and workers while fostering growth.
Across multiple metrics evaluating business climates, employee welfare, and economic balance, the state consistently lands near the bottom, revealing structural hurdles that hinder its economic performance.
In rankings focused on business climate, New Mexico ranks 47th overall, among the lowest in the nation. Factors contributing to this poor score include a lackluster ranking of 43rd for CNBC’s “best business climate” and 44th for U.S. News’ measures of opportunity and economy.
These metrics capture New Mexico’s challenges in attracting and retaining businesses due to high tax burdens and limited growth opportunities due to leftist policies.
For example, the state ranks 23rd in tax burden but falls to 47th in the number of business startups, indicating a discouraging environment for entrepreneurial activity. While not at the bottom, the state’s GDP growth sits at 27th, showing a slower pace of economic expansion.
On the worker-centric side, New Mexico’s performance is slightly better but still middling. The state ranks 24th regarding worker-centric metrics, reflecting a mixed picture of job stability and pay. Workers face a 2.4% quit rate (24th) and a 1.23% dismissal rate (14th), suggesting slightly better-than-average job retention.
However, New Mexico’s cost-adjusted income is a concern, ranking 47th at $42,128 annually, well below the national median. Despite these challenges, the state ranks 15th in Oxfam’s “best workplaces” index, reflecting strong workplace policies relative to its economic peers.
In terms of overall economic balance—combining business and worker priorities—New Mexico ranks 44th. The state struggles to create a mutually beneficial environment for employers and employees, weighed down by its 47th-place ranking for business-friendliness. These imbalances hinder the state’s ability to compete with more dynamic economies like Virginia, Colorado, and Washington, which top the rankings.
New Mexico’s economic difficulties underscore the need for policy shifts to improve its business climate and bolster worker outcomes. With targeted reforms, the state could better leverage its resources to foster an environment conducive to growth for businesses and workers.
See the statistics and read more about these studies here.
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