Overall status Losing

Updated October 2026

Regional comparison: Arizona, Colorado, Oklahoma, Texas and Utah.

New Mexico trails the regional or national benchmark on 12 of 13 scored measures.

  • 1 Winning
  • 12 Losing

SECTION 1

WORKFORCE

1

Unemployment rate (%)

Losing

Out of every 100 New Mexicans who want to work, about five can't find a job. That's the unemployment rate, and it's the number people tend to talk about. The problem is, it only counts people looking for a job.

Source BLS, June 2026 (preliminary)

2

Labor force participation rate (%)

Losing

For every 100 working-age adults here, only about 57 have a job or are hunting for one, compared with an average of 64 in neighboring states. Those who are not job-holders or -seekers here are on the sidelines. They retired early, got discouraged, are mired in unpaid caregiving, or are disconnected. Fewer workers means fewer paychecks, fewer customers, and a thinner tax base.

Source BLS, June 2026 (preliminary)

3

Total nonfarm job growth (12-month)

Losing

Did the state add jobs over the past year? Yes, but more slowly than our neighbors. Think of it as a race where everyone is moving forward, but we're not keeping pace with the group.

Source BLS, June 2026 (preliminary)

4

Private-sector job growth (12-month)

Losing

And in the private sector? Excluding government jobs, this measure shows whether companies are growing their payrolls here. New Mexico's private-sector growth is about half the pace of neighboring states.

Source BLS, June 2026 (preliminary)

SECTION 2

HOUSEHOLD PROSPERITY

5

Median household income $ (2024 USD)

Losing

Median refers to the income of the household that falls exactly in the middle of all comparative households: half earn more, half earn less. A typical New Mexico household makes roughly $16,000 a year less than the typical household in neighboring states. That gap shows up at the grocery store, not just in the data.

Source Census Bureau, 2024 (ACS 1-year)

6

Per capita personal income

Losing

Take every dollar of income in the state — wages, Social Security, investments — and split it across every man, woman and child. This represents the broadest measure of buying power. New Mexico's runs about $11,000 below the norm of neighboring states.

Source BEA, 2025 (annual)

7

Average weekly wage

Losing

The average job here pays about $1,275 weekly. That's roughly $180 less than our neighbors. Same work week, less to show for it.

Source QCEW: Quarterly Census of Employment and Wages, BLS, Q4 2025 (preliminary)

8

Poverty rate (%)

Losing

About one in six New Mexicans lives below the federal poverty line. For a family of four, that means getting by on less than about $32,000 a year. Our neighbors average closer to one in nine.

Source Census Bureau, 2024 (Census SAIPE)

SECTION 3

BUSINESS CLIMATE

9

New business applications per 1,000 residents (applications per 1,000 residents)

Winning

How many people took the leap to file paperwork and start a business? Surprise! New Mexicans do this slightly more often than most surrounding states or the nation as a whole — one of the few economic bright spots on this board.

Source Census Bureau, 2025 (12-month total; population July 2025)

10

Employer establishments per 1,000 residents

Losing

How many employer businesses does New Mexico have per 1,000 residents? This metric counts only those business locations with paid employees, not every business that has registered or filed paperwork. New Mexico has fewer employer businesses per person than neighboring states.

Source BLS, Q4 2025 (preliminary); population July 2025

11

State and local tax burden (% of net state product)

Losing

The share of the state's economic output paid in state and local taxes is about 10 cents per dollar. That's above neighboring states but below the national average.

Source Tax Foundation, 2022 (latest Tax Foundation estimate)

12

State Tax Competitiveness Index (structure of tax code) *

Context

"Competitiveness" refers not to how much the state taxes, but to how messy the tax code is — complexity, loopholes, rates stacked on rates. At 28th of 50, New Mexico's code is mid-pack; most neighbors run cleaner systems. (An expert index, shown for context — not scored.)

Source Tax Foundation, 2026 edition (tax law as of July 1, 2025)

SECTION 4

GROWTH CAPACITY

13

Housing permits per 1,000 residents (units per 1,000 residents)

Losing

This refers to the number of new homes permitted per 1,000 residents. Neighboring states are permitting about 60% more than New Mexico. Fewer homes built today means tighter supply and higher prices later.

Source Census Bureau, 2025 (12-month total; population July 2025)

14

Real Gross Domestic Product (GDP) growth % change, 2024 to 2025

Losing

We're talking about the whole state economy's growth rate with inflation stripped out. New Mexico grew — but slower than surrounding states.

Source GDP: Gross Domestic Product, BEA, 2025 (annual)

* No U.S. number exists for the tax-structure index — it ranks the 50 states against each other, so there's no 'national' score to show.