ECONOMY
New Mexico continues to see slow job growth after federal employment cuts, new report says
Economic outlook includes national threats such as sudden stock selloff for AI companies
New Mexico continues to see slowed employment growth this year as fields that create new jobs are often offset by ongoing job cuts in the federal workforce and elsewhere, according to .
New Mexico Taxation and Revenue Department Secretary Stephanie Schardin Clarke told lawmakers on the interim Revenue Stabilization and Tax Police Committee Monday that the state has seen slowed job growth this year. From June of 2025 to June of 2026, the number of jobs in New Mexico grew by less than 1%, she said.
Job growth was concentrated in industries such as mining, retail and state and local government. Job losses, however, predominantly occurred in the federal government, which cut 2,100 jobs in New Mexico during that time period, according to Schardin Clarke鈥檚 .
Those cuts have led to 鈥渁 weakened job market in New Mexico,鈥� she said, adding that the state鈥檚 unemployment rate is forecast to be 鈥渁bout equal鈥� to the national rate through the end of 2030.
Schardin Clarke鈥檚 presentation provided a forecast for the coming years, which predicts that some industries in the state will create thousands of new jobs between now and fiscal year 2030. Those will likely be partially offset by job cuts in other fields, she said.
She said higher-wage industries, including professional and technical services; construction; and healthcare, are expected to add more than 11,000 jobs in that timeframe. Meanwhile lower-wage industries such as retail and food service are expected to lose nearly 5,000, she said.
Schardin Clarke and Legislative Finance Committee Chief Economist Ismael Torres, who addressed state lawmakers immediately after her, echoed concerns : New Mexico is 鈥渋ndustry-dependent鈥� and vulnerable to a national economic downturn.
罢辞谤谤别蝉鈥� highlighted several risks facing the national economy that would acutely impact New Mexico, including a sudden stock selloff for artificial intelligence companies, changes in the Iran war and strife at the Federal Reserve.
As he presented to lawmakers in August, Torres said the state is poised to see $924 million in 鈥渘ew money鈥� next fiscal year, largely thanks to increased oil prices creating a new wave of tax revenue for state coffers. A $1 change in the annual average price of New Mexico oil translates to a more than $56 million impact on state revenues, according to 罢辞谤谤别蝉鈥� presentation.
鈥淲e鈥檙e seeing the slowdown in the economy that we鈥檝e been expecting,鈥� Torres told lawmakers, before reassuring them that the state鈥檚 projected increases in revenue for the next fiscal are 鈥渜uite healthy.鈥�
