saʴýҳ

ECONOMY

New Mexico’s February unemployment rate hits 4.7%, highest level since 2022

Job losses spanned federal government, construction and manufacturing sectors

Construction workers frame a five-story Residence Inn by Marriott in saʴýҳ earlier this year. A jobs report released Wednesday showed the New Mexico unemployment rate jumped to 4.7%, with losses spanning construction, manufacturing and the federal government over the past year.
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When biologist Robert Prather was fired from his job with the U.S. Fish and Wildlife Service in saʴýҳ early last year, he feared what would come next in his career.

But after he was reinstated to his role about a month later, his concerns were replaced by another source of trepidation: How his office would monitor and protect New Mexico’s at-risk species down roughly 25% of its original staff.

“There’s a lot of folks who have left,” he said, “and then folks continue to potentially leave.”

That strain is playing out even beyond Prather’s office, as federal job losses are mounting in New Mexico. 

The state lost 2,700 federal jobs over the past year, according to a jobs report released Wednesday, indicating that reductions tied to the Trump administration’s cost-cutting efforts seem to have taken effect.

Those losses pushed the state’s unemployment rate to 4.7% in February — matching its highest level since March 2022, when New Mexico was still climbing out of the COVID-19 pandemic. 

Unemployment varied sharply across the state, according to the New Mexico Department of Workforce Solutions report. Los Alamos County recorded a low of 2.3%, while Luna County recorded a high of 16.5%. Bernalillo County’s unemployment rate was 4.7% in February. Santa Fe County’s rate stood at 4.4%. 

Kelly O’Donnell, an economist who closely follows New Mexico’s labor market, said the trend in federal labor cuts highlights how dependent the state is on federal employment and spending.

“This is probably a taste of some pretty serious economic headwinds,” O’Donnell said. “New Mexico is very vulnerable to uncertainty and volatility at the federal level.” 

State government added 1,900 jobs over the same period, helping offset some of the public-sector losses. 

Private employers added roughly 1,600 jobs, led by the health care and social assistance professions, which grew by 2,800 jobs. Retail also grew by 2,100 jobs.

But those gains were partially offset by losses in industries tied to immigration policy, O’Donnell said, with construction and manufacturing shedding a combined 2,300 jobs in New Mexico over the past year. 

“I don’t think we can underestimate the negative impact that federal immigration policy is having on New Mexico’s economy,” she said, noting that the construction and food processing industries rely heavily on immigrant labor.

O’Donnell said inflationary pressures, such as rising gas prices — the consumer price index showed a 3.3% jump through March, largely driven by energy — will also likely be reflected in future jobs reports. 

“The profound uncertainty that I think many of us are experiencing has to be having a chilling effect on employment, if nothing else,” O’Donnell said. “I expect that it will… be (an) increasingly prominent factor in March and April.”

The staff losses Prather’s agency has suffered over the past year have left them “absolutely strapped,” with those who remain picking up “a ton of extra responsibilities.”

But he can also understand why senior employees with federal agencies are choosing a way out under the Trump administration.

“It’s a crushing thing that’s happening,” he said. “I suppose, for the folks who do want to get out, I can’t blame them, but yeah — we’re at critical levels here.”

You can reach Matthew Narvaiz at mnarvaiz@abqjournal.com and John Miller at jmiller@abqjournal.com