REPORT: New Mexico Added Just 900 Jobs in 12-months
Where’s the Growth?
The State’s Newest Job Growth Numbers Show New Mexico is Worst in the West
Martinez’s policies cost more than 10,500 jobs in 1 year
An Analysis of Job Growth in New Mexico
New Mexico’s year-over-year job growth is lagging far behind regional and national averages, according to the most recent data from New Mexico’s Department of Workforce Solutions (DWS), hitting it’s lowest point in more than a year in April 2012 when data shows thatjust 900 more people are working today than a year ago.
The year-over-year job growth rate compares a specific time period (usually a month or a quarter) against the same period from the previous year and is known to be the most effective indicator of economic performance.
Despite regular assurances that the governor is working to bring jobs to New Mexico, year-over-year job growth has been declining in New Mexico every month since December 2011 and has not exceeded 0.9% at any point since Governor Susana Martinez took office in January 2011.
Using preliminary figures from the Bureau of Labor Statistics, the New Mexico Department of Workforce Solutions, as well as state-specific data from Western states, ProgressNow New Mexico compiled the report below.
New Mexico Job Growth: A Year in Perspective
Over the last 13 months (from April 2011 to April 2012), New Mexico’s rate of year-over-year job growth peaked in December 2011 at 0.9% and had an average of 0.36%. In every month during this time span, New Mexico lagged behind the national year-over-year growth average, falling behind the national average by an average of 0.81%.
New Mexico employment has been decreasing since December 2011 - and the trend continues downward into a month that last year saw a drop in jobs which would place New Mexico back into a period of negative job growth (job loss).
While the average year-over-year monthly job growth for Western states in 2011 was 1.46%, New Mexico’s 2011 monthly average was only 0.13%. The 2011 year-over-year US average of job growth was 1.008%.
The worst months in terms of the difference between New Mexico’s job growth and the national year-over-year growth average were April 2011, May 2011, and April 2012. April 2011 saw New Mexico fall 1.4% behind the national average while in May 2011 the difference was 1.5% and in April 2012 the difference was 1.3%.
Compared to Western states, New Mexico also trailed in year-over-year job growth. From April 2011 to April 2012, the average Western state growth was 1.65% while New Mexico averaged just 0.36%.
New Mexico’s Unrealized Potential
Figures set to be released in the state’s monthly employment snapshot report on Friday show that the year-over-year job growth of 0.1% from April 2011 to April 2012 represents an increase of just 900 jobs.
If New Mexico had matched the national average of year-over-year growth for April 2012 (1.4%), New Mexico would have added 11,200 new jobs - meaning New Mexico’s economic policies cost the state more than 10,000 jobs last year alone.
If we compare New Mexico’s April 2012 year-over-year numbers to the average of the Western states, it’s clear that New Mexico’s downward trend in job growth is continuing. The April 2012 year-over-year average for those Western states is 1.61%. If New Mexico matched that average, which is 1.5% higher than New Mexico’s 0.1%, we would have added 12,800 new jobs.
Similarly, in March 2012, New Mexico’s year-over-year job growth was 0.5%, which translated into an aggregate increase of 4,000 jobs. If New Mexico had added jobs at the national year-over-year average of 1.5% in March 2012 however, New Mexico would have added 12,000 jobs.
Additionally, if New Mexico had matched the Western state average of 1.78% year-over-year job growth for March 2012 we would have added 14,240 jobs, or over 10,000 more jobs than were actually added during that period.
While the rest of the West is experiencing stronger-that-average job growth each month, New Mexico continues to fall far behind, leading many to question the effectiveness of Governor Martinez’s economic policy decisions including vetoes of state-administered programs and capital outlay funds which support professional and construction jobs across the state.
Previous ProgressNow NM reports have detailed the lowering of New Mexico’s “business friendly” rankings by corporate CEO’s since Martinez took office and the impact of her veto of legislation passed by the legislature to lower the tax burden on local businesses and level the playing field allowing New Mexico companies to compete with large out-of-state corporations. New Mexico remains the only Western state to maintain this type of unfair tax structure.