The COVID-19 pandemic has caused declines in New Mexico’s economy across the state.
The southeastern region has been grappling with the decline of the oil and fuel industry, its main source of income and employment, as the industry again became a major economic driving force amid the pandemic.
An Eddy County economic summary published in August through the state’s Department of Economic Development showed that the county lost 22% or $452 million of its equivalent taxable gross income (MGRT) between the third and fourth quarters of FY2020, which took place on July 1. . June 2019-30 June 2020.
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Since the fourth quarter of 2019, the county has recorded a loss of $326 million, according to records.
MGRT is the county’s gross tax gain that is paid for business operations in the county, is allocated to tax payments, and is believed to constitute the overall economic activity.
Oil and fuel combined with mining in Eddy County saw the biggest drop of any sector, according to the report, in terms of annual expansion of $ 78 million, from approximately $ 551. 9 million in the fourth quarter of the fiscal year. 2019 to approximately $ 473. 6 million a year later. .
But despite the loss, according to the report, the industry accounted for 30% of MGRT in Eddy County.
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The number of oil and fuel platforms operating in New Mexico has declined over the following year to an average of 46 platforms in August, down below an average of 109 in August 2019, and the industry has struggled with oil costs as the market struggles to fall oil costs below $0 in April for the first time in history.
Construction is the largest industry at the time, accounting for 20 percent of JTTS in Eddy County, while retail is third with 12 percent.
Over the course of the recent peak year, the structure fell by approximately 2% or $6. 2 million, from $319. 4 million in the fourth quarter of fiscal 2019 to approximately $313. 1 million in the fourth quarter of fiscal 2020.
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The retail industry fell by 26%, or about $63. 4 million last year, from $246. 2 million at the end of fiscal 2019 to approximately $182. 8 million at the end of fiscal year 2020.
Arts, entertainment and recreation recorded the biggest drop in THE MGRT, reportedly from 66% from $444,198 to $151,515 in the last fiscal year.
Despite the recent decline in the county economy, it has increased over the past decade, the report says.
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From fiscal year 2011 to fiscal year 2020, Eddy County recorded a 376% increase in gross revenue and an expansion of about 16% last year.
But quarterly TRM revenue fell by 23% between the third and fourth quarters of fiscal 2020, as the pandemic saw its greatest effect on the state.
The declines correlated with an increase in unemployment in Eddy County and across the state, according to the state’s most recent economic knowledge published on August 28.
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The state reported that Eddy County’s core power fired 112 employees at its Artesia site in March.
Eddy County’s 10. 7 percent unemployment rate is the ninth most productive among New Mexico’s 33 counties, but nearly wobbled last year since July 3. 7 percent.
In the last month of the fiscal year, the unemployment rate in Eddy County rose from 3. 9% to the unemployment rate of 6. 8% reported in June.
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Neighboring Lea County, also known for the progression of heavy oil and gas, reached 16. 5%, the third unemployment rate in the state, in July, compared to June 10. 7% and 4. 8% last year.
Chaves County, north of Eddy, recorded 13. 4% unemployment in July, up from 8. 6% in June and 5. 9% in July 2019.
Across the state, New Mexico’s most recent unemployment rate was 12. 7 percent, and the U. S. unemployment rate was 10. 2 percent in July, according to the Bureau of Labor Statistics, after a 0. 9 fall that month.
“This unprecedented accumulation in initial unemployment applications is notoriously similar to the COVID-19 pandemic and the forthcoming licensing and layoffs of the affected companies,” the report says.
“As the slow reopening continues, the number of initial unemployment programmes is likely to stabilize and then decline, but employment figures are expected to temporarily return to pre-COVID levels. “
Adrian Hedden can be reached at 575-628-5516, achedden@currentargus. com or @AdrianHedden on Twitter.