New Mexico’s economy in mid-2025 is sending mixed signals.
Unemployment is low. The rate was 4.3% in April, just above the national average of 4.2%. That’s steady from March, but up from 4.0% a year ago. Job growth is solid. The state added 10,800 nonfarm jobs between April 2024 and April 2025- a 1.2% increase.
There are fewer job openings than before. Openings dropped from 56,000 in February to 44,000 in March. But the 4.7% job openings rate remains higher than the national average. Employers are still hiring. Layoffs remain stable. About 11,000 people were laid off in March, in line with the monthly average.
Yet, federal funding cuts are causing job losses.
Federal freezes and reallocations are hitting hard. Many programs in New Mexico rely on federal support. Now they’re cutting staff.
- The National Park Service had layoffs tied to canceled federal projects.
- Carson National Forest lost staff involved in recreation services.
- The Institute of Museum and Library Services (IMLS) reportedly laid off its full team. That delayed reimbursements to state agencies.
- The New Mexico Grant Administration is struggling to support local requests due to fewer federal opportunities.
- At Southwestern Indian Polytechnic Institute (SIPI), key staff were laid off. These include roles tied to student support and financial oversight.
- Rocky Mountain Youth Corps (RMYC) lost access to $2.8 million in federal funds. Another $1.3 million is on hold. The group had to cancel plans to hire 130 youth over four months. That means less work on public lands and fewer jobs.
- Supportive Housing Coalition of New Mexico laid off 10 people. These roles were tied to the Housing Voucher Program, now underfunded.
These losses affect public administration, nonprofits, and education. They show how federal policy directly shapes New Mexico’s job landscape.
Intel is cutting too.
Intel has a large chip plant in New Mexico. It’s undergoing global restructuring. Layoffs begin in mid-July. Cuts will wrap by month’s end. Intel plans to reduce 15% to 20% of its factory workforce globally. That could affect thousands. New Mexico's share isn't confirmed yet. These cuts follow similar actions in 2024.
This comes despite a $7.9 billion federal subsidy awarded to Intel in 2024. That funding supported factory expansions in Arizona, Ohio, and New Mexico. But global pressures and company restructuring are driving layoffs, regardless of subsidies.
Construction is a bright spot.
From April 2024 to April 2025, the sector grew by 14.6%- the fastest in the state. It shows continued investment in housing and infrastructure.
Other strong sectors include:
- Professional, Scientific, and Technical Services, which led taxable gross receipt growth in early 2025.
- Manufacturing showed a 16% increase in gross receipts in Q2, though Intel’s cuts suggest uneven performance.
New Mexico is working to diversify. The 2025 State Plan Update aims to reduce dependence on oil, gas, and public sector jobs. The goal is to grow private industries and build a more resilient economy.
The state has strong reserves. At the end of FY2025, New Mexico is expected to have 34.2% of its general fund in reserves. This gives leaders room to invest and respond to future economic shocks.
In short, New Mexico’s job market is growing- but not without stress. Overall hiring is healthy. But federal funding cuts and Intel’s restructuring are driving significant layoffs. These opposing forces make 2025 a year of complex economic transition for the state.