from the New Mexico News Connection - A statewide news service for New Mexico
Albuquerque, NM - A new report paints a grim picture for New Mexico's economic future, showing a potential crisis for the state when Recovery Act money starts to run out next year. Additionally, high unemployment is expected to hang around until well into the next decade. That's the gloomy outlook in the report out this week that shows the Land of Enchantment had the third-worst job loss numbers in the country for June. Unemployment here is currently at eight-point-two percent, and report author Gerry Bradley with the Fiscal Policy Project at New Mexico Voices for Children says that rate could remain high - above six percent - until 2015, "You know, if there isn't a pickup in the private economy by the middle of next year when all of the Recovery Act money starts going away, we're going to be in a lot of trouble."
Bradley says the federal stimulus spending has so far kept the state from going into an economic free-fall, but it has not been enough. He says more federal help is needed because the state is not in a position now to stimulate its own economy. According to Bradley New Mexico's unemployment problem can be traced back to when the bubbles in housing and resource extraction burst at the onset of the recession,"There were fewer jobs in both construction and mining. I think what the issue is, is that nothing else has come along to re-energize employment in New Mexico in the near-term."
The report, "New Mexico Revenues and Expenditures: A Mid-Recession Snapshot," is at http://www.nmvoices.org/fpp_attachments/mid-recession-snapshot-8-10.pdf
Eric Mack reporting, E-mail: firstname.lastname@example.org