Survey spotlights NM's 'tricky' path to recovery - Albuquerque Journal

Survey spotlights NM’s ‘tricky’ path to recovery

Around 38% of New Mexicans expect someone in their household to lose employment income over the next four weeks – the third-highest rate of the measure of any state in the country behind California and Nevada, according to a survey from the U.S. Census Bureau.

The agency began conducting the Household Pulse survey during the pandemic and New Mexico has often had one of the highest rates of adults expecting a loss of income for weeks – but the percentage is growing.

In October, the percentage was 24%, but grew all the way to 41% Wednesday before seeing a brief decline. Numbers are determined by survey responses given by residents.

Jim Peach, a retired professor of economics at New Mexico State University, said New Mexico’s high ranking shouldn’t come as a surprise.

“We started out with a situation in which New Mexico had one of the highest poverty rates in the nation,” Peach said. “Our starting point was bad.”

Making matters worse is that two of the state’s key industries – fossil fuels and tourism – have taken big economic hits since the pandemic hit the state, he said. That’s led to many employed New Mexicans feeling insecure about their prospects.

And when people feel their job status isn’t secure, they’re less likely to spend money except on the essentials, which Peach said creates a vicious cycle with other areas of the economy.

But the lack of another federal stimulus bill also has New Mexicans feeling economically vulnerable.

New Mexicans saw a massive 40% increase in personal income in the year’s second quarter compared to the previous quarter, according to the federal Bureau of Economic Analysis, due in large part to an influx of money from the Coronavirus Aid, Relief, and Economic Security Act.

But the next quarter saw incomes dwindle by 15%, as federal relief dollars slowly began to shrink and saw no replacement.

Reilly White, an associate professor of economics at the University of New Mexico, said an additional stimulus package could help shore up the economic confidence in many New Mexicans.

“Even though there is a lot of good news to report regarding the trajectory of the economy … many people view it as a tricky road ahead,” White said.

The survey also ranks New Mexico high in the percentage of people at risk of eviction or foreclosure, 49%, and 43% now find difficulty in paying for usual household items.

Peach and White said the numbers clearly indicate that – even with a vaccine in the early stages of distribution – New Mexico still faces a long, painful economic recovery that could take years.

“There’s a great sickness within the economy and we are far (away) from a full recovery,” White said.

 

Home » News » Albuquerque News » Survey spotlights NM’s ‘tricky’ path to recovery


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
Where's the International Folk Art Market moving to? Find ...
ABQnews Seeker
Officials released that the long-standing summer ... Officials released that the long-standing summer market will move from Museum Hill to the Santa Fe Railyard Park in 2023.
2
NMSU to hire outside firm to probe shooting involving ...
ABQnews Seeker
New Mexico State University said Tuesday ... New Mexico State University said Tuesday the school would hire an external, third-party investigator to review the fatal shooting involving an NMSU basketball player ...
3
NM adds anxiety disorder as medical cannabis qualifying condition
ABQnews Seeker
New Mexico will add anxiety disorder ... New Mexico will add anxiety disorder as a qualifying condition to participate in its medical cannabis program, after the state's top health official approved ...
4
Services announced for Los Ranchos judge Diane Albert
ABQnews Seeker
Services for Diane Albert, 65, late ... Services for Diane Albert, 65, late municipal judge for the Village of Los Ranchos de Albuquerque, will be at 6 p.m. Tuesday, Dec. 6, ...
5
Missing girl found; man charged with assaulting officer while ...
ABQnews Seeker
A man allegedly lost his temper ... A man allegedly lost his temper and nearly attacked an officer Monday night as Albuquerque police searched the city for his missing five-year-old. The ...
6
Albuquerque City Council approves commission to focus on domestic ...
ABQnews Seeker
In an effort to improve interventions, ... In an effort to improve interventions, services and public understanding, Albuquerque is launching the Commission on Domestic Violence and Sexual Assault. The city council ...
7
Volunteers needed for vital CASA program
ABQnews Seeker
Goal is 'to have 100% case ... Goal is 'to have 100% case coverage,' says executive director of CASA Partners 4NMKids
8
City council says yes to noise cameras
ABQnews Seeker
and listening — too. The city ... and listening — too. The city council on Monday approved a pilot program aimed at detecting loud vehicles through the use of special cameras. ...
9
Local nonprofit Locker#505 helps 116 Albuquerque students shop for ...
ABQnews Seeker
Nonprofit Locker505 provides clothing for more ... Nonprofit Locker505 provides clothing for more than 12,000 students through community donations