Las Cruces Jobs Up 2.2%, Wages Hit Fastest Growth Since 2023

Employment in the Las Cruces metro area expanded 2.2% in the year through June, adding 1,800 jobs, the Federal Reserve Bank of Dallas reported in its latest quarterly Southern New Mexico Economic Indicators release.

The gains were concentrated in government (620 jobs), trade, transportation and utilities (620 jobs), and construction and mining (400 jobs). Professional and business services, other services, and information saw no growth over the 12-month period.

The unemployment rate held at 5.4% in June, unchanged from March but up from 4.7% a year earlier. New Mexico's rate was also flat at 4.8%, while the U.S. rate dipped to 4.2% from 4.3%.

Wages accelerated sharply. Average nominal hourly pay in Las Cruces rose to $26.10 from $25.38 in March, a 2.8% quarterly increase. Year over year, wages climbed 5.2% – the fastest annual gain since 2023. The increase outpaced the state average of $31.66 and the national average of $37.64, though both remain well above Las Cruces levels.

State oil production rose to 2.4 million barrels per day in May, roughly stable from earlier in the year. The drilling rig count fell to 96 in July from 103 three months prior, a drop that could signal slower future output if sustained.

Housing supply tightened. The inventory of single-family homes on the market across New Mexico declined to 3,600 in May from 3,800 in February. Building permits for new single-family units fell 7.2% over the three months ending in June, pointing to a potential drag on new construction.

The Dallas Fed will publish the next Southern New Mexico Economic Indicators report later this year.