Construction boosts modest job growth

New Mexico’s construction industry continues to boost employment in the state, but job growth still lags the rest of the country, according to data released Friday.

For the 12 months ending in July, the state added 8,400 jobs.

That increased non-farm employment levels by 1 percent.

The number was modest compared with the June increase of 15,600 jobs over the previous year.

But the July data shows the state continues to lift itself from job losses in 2016, when falling crude oil prices forced layoffs in energy-related sectors.

The unemployment rate in New Mexico stood at 6.3 percent in July, down from 6.8 percent a year ago, but still second worst in the United States after Alaska’s 7 percent. The national unemployment rate was 4.3 percent.

North Dakota had the lowest unemployment rate at 2.2 percent and Colorado was second-best at 2.4 percent. The July unemployment rates in North Dakota and Tennessee at 3.4 percent set new lows, according to the U.S. Bureau of Labor Statistics.

The biggest boost to New Mexico’s economy is coming from construction, which has expanded 5.3 percent since last July and added 2,300 jobs.

“July represents the ninth consecutive month of gains in the industry since growth turned positive in November 2016,” the state Department of Workforce Solutions said in its monthly news release.

Two other areas — health care and tourism — are seeing a slower expansion.

“Growth has been somewhat muted compared to gains seen in the previous two years,” according to economists at the Department of Workforce Solutions.

Los Alamos County has the lowest unemployment in the state at 4.5 percent.

McKinley County has the highest at 10.4 percent. Unemployment in Santa Fe County stood at 5.9 percent in July, the same as a year ago.

State economists are forecasting a continued recovery for 2018 with state unemployment falling to 5.6 percent by next summer and job growth reaching its historical average of 2 percent a year.