The University of New Mexico

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Media Contact: Steve Carr, (505) 277-1821; e-mail: scarr@unm.edu

September 21, 2006

New Mexico's Economy On Track According to UNM's Bureau of Business and Economic Research

The pace of economic expansion in the New Mexico economy dipped slightly during the second quarter of 2006, as non-farm employment growth slipped to 2.6 percent after having reached 2.8 percent during the first quarter of the year. It's not a cause for concern, though. Employment growth has held in the 2.6 to 2.8 percent range for the last four quarters, and it appears to have found a comfortable level. In fact, similar growth, or a little less, is expected for the next couple of years, says UNM Bureau of Business and Economic Research (BBER) Senior Economist Larry Waldman.

The New Mexico economy added 21,166 net jobs from the second quarter of 2005 to the second quarter of 2006. More than half of the additional jobs came in just three sectors — construction, government and health care/social assistance.

New Mexico has ridden the crest of a construction wave the last three years, during which time the sector has added more than 10,000 jobs -- an average annual increase of 6.6 percent. In the second quarter of 2006, the gain was 9 percent, 4,833 more jobs than a year ago. Health care and social assistance employment increased 4 percent (3,667 jobs), while the government sector gained 3,367 jobs, a 1.7 percent increase.

The mining and natural resources sector maintained its path of robust growth, posting a 12.2 percent gain (2,000 jobs). Most of the increase came in oil and gas extraction and drilling (1,833 jobs, 14.9 percent). Employment in non-oil and gas mining was up 133 jobs (4.2 percent) compared to a year ago. Oil and gas production each slipped 3.4 percent in the first quarter of 2006.

Several other sectors each added more than 1,000 jobs, including manufacturing, business services and retail trade. The overall assessment and outlook for New Mexico indicates a good economy on solid footing, with every sector adding jobs and plenty of more jobs in the pipeline, added Waldman.

Non-farm employment growth will remain in the neighborhood of 2.5 percent through the end of 2007. Strength during this period will come from a number of sectors, including mining and construction. Other sectors making significant contributions include manufacturing, health care and social assistance, information, business services and educational services.

For those interested in the New Mexico economy, BBER has two publications available by subscription, New Mexico Business , a monthly summary of recent economic trends, and The FOR-UNM Bulletin , a quarterly economic forecasting newsletter. For more information contact Waldman at (505) 277-7077 or via e-mail at lwaldman@unm.edu .

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The University of New Mexico is the state's largest university, serving more than 32,000 students. UNM is home to the state's only schools of law, medicine, pharmacy and architecture and operates New Mexico's only academic health center. UNM is noted for comprehensive undergraduate programs and research that benefits the state and the nation.

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