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With the federal government's efforts to downsize the federal workforce at least 200,000 workers have been notified that their position is targeted for potential elimination or is being eliminated immediately under Elon Musk's DOGE initiative. Over 3 million Americans work for the Federal Government with an additional 1.2 million in military and military support roles.
New Mexico is heavily influenced by Washington DC with the federal government controlling 34% of the states land and as Elon Musk’s Department of Government Efficiency cuts large swathes of the federal government, the fallout is just beginning to be felt in New Mexico, where federal employees make up to 5% of the total state's workforce. According to the New Mexico Department of Workforce Solutions, as of December 2024, there were 29,600 federal employees in the state of the 898,600 non-farmworkers, but a cross-analysis of the American Community Survey and current employment statistics by the Economic Policy Institute found that there are closer to 44,000 federal government employees living in New Mexico as of Feb. 18, 2025.
Otero County New Mexico hosts 1720 federal jobs and almost 5,000 military related jobs. Employees with the Forestry Service, Bureau of Land Management, Department of Veterans Affairs, military support roles at Holloman and White Sands, National Park, Mescalero's IHS Mescalero Service Unit, U.S. Department of Fish & Wildlife, Natural Resources Conservation Services, US Department of Agriculture, Commerce and Customs and Border Patrol support personnel have all been notified of potential layoffs locally
One federal agency representative located in Otero County, fearful to speak on the record fearing retaliation and her job being eliminated stated, "I expect up to 300 federal workers will be terminated in Otero County and another 200 in Lincoln County over the next 30 days, with a second round of deeper cuts to follow. My superiors in DC said to plan for a significant reduction in funding and staff. It's not a if but a when will the deepest cuts begin. It's a horrible work environment of uncertainty right now."
A federal layoff of 300 to 500 federal employees within Lincoln and Otero Counties of New Mexico could have a very significant trick down impact on local businesses, housing and the local economy. It's estimated that early round layoffs could exceed 3,000 federal workers in New Mexico, and up to one Million nationwide over the next 30 days.
In the meantime Gov. Michelle Lujan Grisham announced that the New Mexico Department of Workforce Solutions, in partnership with the State Personnel Office and the Economic Development Department, is launching comprehensive support initiatives to assist individuals recently separated from federal employment.
This initiative includes a dedicated resource web page, recruitment events, and access to education and training opportunities.
“We are committed to ensuring that New Mexicans who have been abruptly dismissed from federal jobs have the resources and support they need to transition smoothly into new career opportunities,” said Gov. Lujan Grisham. “Our state agencies and partners are mobilizing to provide job assistance, education, and training to help our workforce thrive.”
The dedicated resource page is available on the Department of Workforce Solutions website: WorkForNM.com or www.dws.state.nm.us/FederalWorkerResources. The online resource offers vital information about unemployment insurance, job search and career support, and answers to frequently asked questions. This centralized hub aims to streamline access to critical resources for affected workers.
To connect federal workers recently separated from their jobs with immediate opportunities, recruitment events are scheduled at America’s Job Center New Mexico locations on the following dates:
- Feb. 28 – Albuquerque and Santa Fe, 2 – 5 p.m.
- March 7 – Carlsbad and Las Cruces, 2 – 5 p.m.
These events will feature employers ready to hire, including New Mexico State agencies, private sector businesses, and local municipalities. Attendees can explore career opportunities, network with potential employers, and learn about available education and training programs for career growth.
Those interested in career opportunities within state government may see openings on the State Personnel website, www.spo.state.nm.us.
Workers separated from employment from the federal government, federal contractors, or federal grantees are encouraged to apply for Unemployment Insurance. Applications may be submitted online at www.jobs.state.nm.us, by phone at 1-877-664-6984, or in person at any America’s Job Center New Mexico location. Additional information is available at www.dws.state.nm.us/UIQuickFacts.
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