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ANALYSIS OF JOB GROWTH IN NEW MEXICO

New Mexicos year-over-year job growth is lagging far behind regional and national averages, according to the most recent data from New Mexicos Department of Workforce Solutions (DWS), hitting its lowest point in more than a year in April 2012 when data shows that just 900 more people are working today than a year ago. The year-over-year job growth rate compares a specific New Mexico, in time period (usually a month or a quarter) against the total, has just same period from the previous year and is known to be 900 more people the most effective indicator of economic performance. employed in April Despite regular assurances that the governor is working 2012 than a year to bring jobs to New Mexico, year-over-year job growth ago. has been declining in New Mexico every month since December 2011 and has not exceeded 0.9% at any point -Source; NM Workforce Solutions 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.

ProgressNowNM.org

NEW MEXICO JOB GROWTH: A YEAR IN PERSPECTIVE

Over the last 13 months (from April 2011 to April 2012), New Mexicos 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%. While the average year-over-year monthly job growth for Western states in 2011 was 1.46%, New Mexicos 2011 average was only 0.13%.1 The 2011 year- over-year US average of job growth was 1.008%. The worst months in terms of the difference between New Mexicos 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.

Year-Over-Year Job Growth

5 4 % of Growth 3 2 1 0 -1 -2 Date US West NM

From April 2011 to April 2012, the average Western state growth was 1.65% while New Mexico averaged just 0.36%. 1 In addition to New Mexico, these states include Utah, Wyoming, Oklahoma, California, Colorado, Arizona, and Nevada. ProgressNowNM.org 2

NEW MEXICOS UNREALIZED POTENTIAL

Figures set to be released in the states 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.2 This means that New Mexico, in total, has only 900 more people employed in April 2012 than a year ago and the trend continues downward. 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 Governor Susana Martinezs economic policies cost the state more than 10,000 jobs last year alone. Regionally, the numbers are worse. If we compare New Mexicos April 2012 year- over-year numbers to the average of the Western states, its clear that New Mexicos 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 Mexicos 0.1%, we would have added 12,800 new jobs. Similarly, in March 2012, New Mexicos year-over-year job growth was 0.5%, which translated into an aggregate increase of 4,000 jobs.3 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 Martinezs 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 Mexicos business friendly rankings by corporate CEOs 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. 2 See http://www.dws.state.nm.us/news_release/Employment_News_Release_2012_05_18%20.pdf 3 See http://www.dws.state.nm.us/LMI/pdf/lmrmar12.pdf ProgressNowNM.org 3