ALBUQUERQUE, New Mexico – New Mexico’s labor market showed mixed signals in December. Overall employment grew driven by public sector while unemployment is ticking up.
The seasonally adjusted unemployment rate rose to 4.3 percent in December, which is slightly higher than November’s figure at 4.2 percent and has remained the same from a year earlier. The national unemployment rate stood at 4.4 percent, slightly lower from 4.5 percent in November, higher than December 2024 by 0.4 percent.
New jobs, uneven growth
Year on year basis, the state, according to US Bureau of Labor Statistics, has added some 8,800 nonagricultural jobs, a mere 1.0 percent increase from December 2024. Most of the growth came from the public sector, which has added 5,800 jobs. The private sector grew slightly with 3,000 new jobs.
The private sector has seen uneven growth.
A construction boom has largely contributed to 3,800 new jobs or 3.5 percent increase in goods-producing industries. Mining and construction together created 4,000 new jobs. The construction sector accounted for 3,500 of the new jobs or an increase of 6.3 percent from a year earlier while temployment in mining rose by 500 jobs or 2.1 percent.
But employment in the manufacturing sector declined by 200 jobs or 0.7 percent. Losses in durable goods manufacturing outweighed small growth in nondurable goods.
Overall, private service-providing industries lost 800 jobs or 0.1 percent. Education and health services recorded the highest gains with 7,200 jobs or 4.7 percent, led by health care and social assistance. Financial activities has also increased with 1,400 new jobs or 3.9 percent.
New jobs but reliant on public sector
There is a decline in several major service sectors.
Professional and business services dropped by 4,600 jobs or 3.8 percent. Leisure and hospitality have also lost some 1,800 jobs or 1.8 percent. Trade, transportation, and utilities sectors have also shed some 1,400 jobs due to sharp decline in transportation and warehousing. The steepest drop, however, is in the information sector with 11.0 percent decline year on year.
The public sector continued to buoy overall employment. Some 6,700 jobs were added by the local government including sharp uptick in education. State government employment on its part rose with some 1,900 jobs while the federal government employment decreased by 2,800 jobs or 9.5 percent.
The overall trend points to an economy that create new jobs but increasingly reliant on public sector expansion with some private industries are facing headwinds.