·         The New Mexico economy continues in a mild recession. Employment (household survey) fell by a barely measurable .8 percent in January compared to January 2008. Payrolls (establishment survey) fell 1.0 percent.

·         Statewide unemployment was up sharply by 2.0 percent compared to twelve months previously to 5.2 percent, which is troubling. Nationally, unemployment increased 3.1 percent. So relative to the national economy, New Mexico is doing OK, but relative to ourselves, things are deteriorating.

·         The Las Cruces MSA continues to buck the trend both national and statewide trend by avoiding out right recession. But growth is very slow and not likely to recover in the near future.

·         The city saw a 0.6 percent increase in payroll employment in January compared to twelve months previous. The unemployment rate was increased sharply, up 1.9 percent to 5.6 percent.

·         Las Cruces real estate market, which has done better than nationally, is starting to show more weakness. Of course, volume has been down for more than a year, but now prices seem to be falling off some now. The Housing Price Index is down 3.3 percent in the third quarter compared to four quarters previously, more than statewide for the first time during this downturn, but still less than the national number. Statewide real estate prices were down 1.9 percent in the third quarter, nationally down 4.5 percent.

·         Foreclosures in the state were down in February by 25 percent from February of last year. The state ranked 38^th among the 50 states for foreclosures.

·         The weakest sectors statewide were construction, down 9.6 percent in January compared to January 2008, manufacturing (down 5.1 percent), and transportation and warehousing (down 4.7 percent). All three sectors are traditionally sensitive to national recessions.

·         Strong sectors in January statewide were education and health services (up 4.0 percent compared to a year earlier), natural resources and mining (up 3.6 percent), and government (up 1.1 percent).

·         Weak sectors in Las Cruces were natural resources and mining (down 9.3 percent in January compared to 12 months previous), transportation and warehousing (down 5.3 percent.), and retailing (down 4.1 percent).

·         Strong sectors in Las Cruces were finance (up 8.3 percent in December compared to a year earlier), business services (up 6.6 percent), and other services (up 5.9 percent).

·         Stargate: Universe is shooting an episode in Alamogordo. It is expected that 75 locals will be hired. New Mexico has a generous film incentives program. Production companies can, for example, deduct 25 percent of the value of taxable expenditures in New Mexico, including expenditures on film crews.

·         The U.S. Forest Service plans to release $5 million in federal stimulus funding for two projects in New Mexico. More than $3.6 million will go toward hazardous fuels reduction on the Lincoln forest in southern New Mexico creating about 40 jobs. On the Santa Fe forest, more than $1 million will create about 12 jobs.

·         Cummins Natural Gas Engine in Clovis has laid off 16 workers 39 employees continue working at Cummins.