New Mexico Economy Shows Steady Gains: Unemployment Dips to 4.2%, 5.1% in Otero County

Alamogordo, NM – January 9, 2026 – Good news for New Mexico workers: The state’s seasonally adjusted unemployment rate fell to 4.2% in November 2025, down from 4.4% a year earlier and better than the national rate of 4.6%. That’s according to the latest report from the New Mexico Department of Workforce Solutions (DWS), released January 7.

Over the year (November 2024 to November 2025), the state added 11,600 nonfarm payroll jobs – a solid 1.3% growth. Private sector employers drove most of that, adding 7,700 positions, while government jobs grew by 3,900.

Where the jobs are coming from:

• Health care and social assistance: The big winner, up 8,400 jobs (6.5% growth) – reflecting New Mexico’s aging population and expanding medical services.

• Construction: Strong gains of 3,100 jobs (5.6%), fueled by infrastructure projects and housing demand.

• Mining: Up 300 jobs, mostly in oil and gas regions.

• Financial activities: Added 1,600 positions.

• Local government (especially education): Up significantly, with 4,600 new school-related jobs.

Not every sector shone: Professional and business services shed 4,700 jobs (3.8% decline), information lost 1,100, and trade/transportation/utilities dropped 1,100.

Local Spotlight: Otero County Holds Steady

Here in Otero County, the not-seasonally-adjusted unemployment rate came in at 5.1% for November 2025 – slightly higher than the state average but improved from recent months. Employment stood at about 23,725 residents working, with total labor force around 24,991.

That’s encouraging stability for our area, supported by Holloman Air Force Base, healthcare providers like Gerald Champion Regional Medical Center, and ongoing construction activity. While we don’t see the explosive health care growth of bigger metros, Otero’s diverse mix – including defense, tourism in nearby Lincoln County, and retail – helps buffer downturns.

Luna County topped the state at 12.8% unemployment, while Los Alamos enjoyed the lowest at 2.2%.

The report notes a data gap for October 2025 due to last year’s federal appropriations lapse, but November numbers paint a picture of cautious optimism heading into 2026.

Economists point to national trends like cooling inflation and steady consumer spending as tailwinds, though risks remain from potential federal budget shifts affecting bases like Holloman.

We’ll keep watching these monthly releases – next up, metro-area details on January 16.

For the full report, visit the DWS site: Monthly Employment Release November 2025.

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