unemployment

In recent developments, the unemployment rate in New Mexico has experienced an unsettling rise, now standing at 3.9% in February, marking an increase from the 3.6% recorded a year ago. This upward trend in unemployment contrasts with a slight decrease from January’s 4.0% rate, yet the year-over-year increase raises concerns. 

This shift underscores a troubling aspect of the broader economic landscape, which can be attributed to the ineffective economic strategies under the current administration led by Joe Biden and those of far-left Gov. Michelle Lujan Grisham.

The overall employment scenario in New Mexico, particularly in nonagricultural sectors, saw a growth of 13,700 jobs, a 1.6% increase from February 2023 to February 2024. 

This growth was primarily observed in the private sector, which added 6,300 jobs, reflecting a 0.9% rise. The public sector saw a more significant increase, adding 7,400 jobs, which translates to a 4.0% growth rate. Coincidentally, the private sector is also where Democrats are hamstringing, passing an increase to the corporate tax rate during the 2024 Legislative Session.

Focusing on the private sector, service-providing industries witnessed a modest growth of 0.6%, adding 3,500 jobs, while goods-producing sectors saw a stronger 2.7% increase, adding 2,800 jobs. 

Within these sectors, construction, and mining led the way with a 3.1% increase, contributing 2,300 new jobs, largely buoyed by the construction industry, which alone accounted for 1,900 new positions, marking a 3.8% growth.

Despite these job gains, the increment in unemployment hints at underlying challenges. The rise from the previous year’s rate suggests that the job growth may not be keeping pace with the expanding workforce or addressing the state’s full scope of employment needs. 

This scenario has led to focus on the federal economic policies under Biden, with many noting that these policies are failing to foster a robust job market in New Mexico and potentially other states, leading to increased unemployment and economic uncertainty.

In the most recent report from the U.S. Department of Labor, it was revealed that initial filings for unemployment benefits in New Mexico experienced an increase during the week ending November 25 compared to the previous week. The data, considered a key indicator of job market dynamics, showed that new jobless claims in the state rose to 743, marking a notable uptick from the 586 claims recorded in the preceding week.

On a national scale, U.S. unemployment claims also registered an increase, reaching 218,000 in the same week. This marked a rise of 7,000 claims from the previous week, which had reported 211,000 claims. The figures are seasonally adjusted to account for variations in employment patterns that occur regularly throughout the year.

Notably, the state of Kansas stood out with the largest percentage increase in weekly claims, experiencing a significant surge of 91.0%. In contrast, Oregon saw a noteworthy decline in new claims, with a substantial 48.3% drop. These contrasting trends in different states highlight the dynamic and varied nature of the economic impact of the ongoing circumstances.

The reasons behind the increase in unemployment claims in New Mexico and other states are likely influenced by a range of factors, including shifts in local economic conditions, potential fluctuations in job availability, and broader macroeconomic trends. The data underscores the continued challenges and uncertainties facing the labor market as it navigates the complex landscape shaped by both the ongoing recovery efforts and the lingering effects of the recent global disruptions.

As policymakers and analysts assess these trends, the focus remains on supporting economic recovery measures and addressing the specific needs of communities facing heightened unemployment challenges. The evolving situation will be closely monitored for its implications on both regional and national economic recovery trajectories.