Home News Local News Researcher says oil and gas job growth slowing

Researcher says oil and gas job growth slowing

0

Copyright © 2021 Roswell Daily Record

New Mexico could begin to experience some economic slowdown in the years ahead, as the oil and gas production boom of the past few years began to taper off in the second quarter of 2019.

That’s one of the conclusions of Jeffrey Mitchell, director of the University of New Mexico Bureau of Business and Economic Research.

Mitchell presented some data to the Risk Management Association in early December that includes the finding that the oil and gas boom-driven growth since 2016 will shift in 2020 to government growth as increased oil and gas taxes, rents and royalties fund government spending on infrastructure, buildings and other projects and initiatives. By 2021, the state will begin to experience slower job growth, Mitchell indicated.

According to Mitchell’s presentation, the state added 10,873 jobs from January to March 2019, with 12.8% directly related to the oil and gas industry. All major metropolitan areas in the state, except Farmington, saw growth during that period. Most jobs were added (5,257) in Eddy and Lea counties, which represent about 7% of the state labor force. Farmington experienced a loss of 890 jobs during the same period in 2019.

Starting in July 2020, the statewide job growth could slow significantly and, by 2021, represent 3,000 to 4,000 fewer jobs than were added in 2019 and 2020. Also, in 2020, personal income growth could slow, as the final cost-shifting related to Medicaid coverage moves from the federal government to the state government.

Support Local Journalism
Subscribe to the Roswell Daily Record today.

The report also noted that economic growth since 2016 had some good effects in the current year for Chaves County. Its gross receipts taxes grew by about $4 million, or 4%, in 2019. Eddy and Lea counties had close to 45% growth in taxes, more than $110 million, in 2019.

Previous articleAudiologist turns own loss into giving back
Next articleCity considers state funding for police vehicles