NMCentennialBlueBook

See Figures 1A and 1B above and 2A and 2B on page 2. Mining & logging and wholesale trade
grew after falling about 15% and 8%, respectively, in 2009. The gains in the mining & logging
sector included hires at the Freeport McMoRan Copper mine in Grant County, expansion of potash
operations in Eddy County, and renewed activities in oil & gas, particularly in the southeastern
corner of the state.
After gaining 3,017 jobs in 2009, educational services & health care continued a trend of strong
growth. Most of the new jobs in this sector were the result of hiring at existing facilities, as hiring is to
begin at new hospitals in Rio Rancho only later in 2011 and 2012. The government sector continued
to add jobs; however, it is important to note that growth was buoyed by federal government jobs
(1,859, 5.8%), as state and local government employment declined on the heels of budget reduction
measures. Increase in federal government employment is largely associated with the 2010 U.S.
Census and by the third quarter employment levels were in decline as the federal government began
to tighten its budget. Every other sector suffered net job loss. For the second consecutive year, the
construction industry led the way in terms of employment loss, losing 3,667 jobs, a 7.7% decline.
Permits for new housing construction continued to shrink. The total number of permits was down
5.2% during 2010, following even larger declines in 2007, 2008 and 2009. Single-family permits
were down 7.7%. Bucking the trend were multi-family permits, which grew by 12.3%.
As in 2009, the professional & business services sector was the second largest job loser, according
to BBER adjusted estimates. The adjusted data show that the sector shed 2,643 jobs, a 2.6% decline.
The declines are largely the result of temp job losses as well as recent waves of call center closings
and downsizings. Retail trade and manufacturing lost 1,775 and 1,041 jobs, declines of 1.9% and
3.5%, respectively. Both sectors experienced the continuing impact of ripples from the large job
losses in 2009 where each lost approximately 5,000 jobs. Financial activities and transportation,
warehousing & utilities were the other major losers shedding 758 and 683 jobs, declines of 2.3% and
3.1%, respectively.
In summary, after more than two years of sharp declines the economy may have reached the bottom
in 2010:3, with total employment in 2010:4 showing positive year-over-year growth for the first time
since 2008:3.
This forecast of the New Mexico economy is based on the March 2011 IHS Global Insight baseline
forecast. The forecast also reflects re-benchmarked employment data from the Bureau of Labor
Statistics, Current Employment Statistics (CES) program, as issued in March 2011.
The outlook for the New Mexico economy is tepid. The upside is that we are now likely in recovery.
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