Alamogordo NM
3-30-2025 9:53am

Unemployment Numbers Rise in New Mexico and Otero County Over Prior Year

Official unemployment numbers for the state of New Mexico reflects an economic outlook not as bright as in 2024. New Mexico's employment statistics are beginning to reflect the impact of policies in Washington that are trickling into the state and local economy. The state government increased employment, as did construction and multiple areas but the overall rate of unemployment jumped 4 tenths of over the same period last year.

New Mexico’s seasonally adjusted unemployment rate was 4.4 percent in February, unchanged from 4.4 percent in January and up from

3.8 percent in the previous year. The national unemployment rate in February was 4.1 percent, up from 4.0 percent in January and up from 3.9 percent in February 2024.

Specifics to Otero County, it followed the state trend and is up 4 tenths of a percentage verses last year at 4.4% in 2025 from 4% last year.  In Otero County, 1078 perspective employees are without jobs versus 977 last year.

Statewide construction and mining had the largest impact on jobs growth adding 7,000 jobs while Information Technology was down 1,200 jobs, or 10.7 percent. Miscellaneous other services was down 400 jobs, or 1.4 percent. Leisure and hospitality employment was down 400 jobs, or 0.4 percent. Professional and business services was down 200 jobs, or 0.2 percent.

Within the public sector, state government was up 1,900 jobs, or 3.3 percent. Within state government employment, state government excluding education added 1,400 jobs, representing an increase of 4.3 percent. State government education was up 500 jobs, or 2.0 percent. Employment in local government was up 900 jobs, or 0.9 percent. Within local government, the majority of gains were in local government education, which was up 700 jobs, or 1.3 percent. Local government excluding education was up 200 jobs, or 0.4 percent.

Federal government jobs in New Mexico is down 800 jobs, or 2.7 percent, from its employment level in February 2024.

As the continued review of Federal Employment is ongoing state leaders expect Otero County to see significant reductions in employment from federal contracts with Holloman AFB and White Sands Missle Base as well as deeper cuts within the Bureau of Land Management, Bureau of Indian Affairs and with the National Forestry Service all large county employers. 

Otero County and more specifically it's county seat Alamogordo is especially reliant on military employment and civilian support to maintain the local economy.

As part of this federal overhaul, the Department of Defense, which oversees the U.S. Department of the Air Force, is looking to downsize its civilian workforce by 5 to 8%. Defense Secretary Pete Hegseth signed a new memo on March 29th about “Initiating the Workforce Acceleration and Recapitalization Initiative." This memo places a timeline for action with a focus on fast tracking job cuts from the civilian workforce serving the Air Force and the military. 

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