Serving the High Plains
Serving the High Plains
Jobless claims in Quay County fell slightly during the July-to-September quarter but still were high compared to the same quarter a year ago, according to state economic data.
Initial unemployment claims in the county fell to about 300 during the first quarter of fiscal year 2021, a drop of about 10 from the previous quarter, reported the New Mexico Economic Development Department earlier this month.
However, the report shows the county’s jobless claims in that July-to-September quarter still were about 10 times higher than during the same quarter in 2019.
“This unprecedented uptick in initial unemployment claims is tied directly to the COVID-19 pandemic and subsequent furloughs and layoffs by affected businesses,” wrote economists Joel Salas and Ryan Eustice in the report.
“As we continue into early and mid-2021, it is likely the number of initial unemployment claims will vary based on the effects of the pandemic but gradually wane; however, it is impossible to predict how quickly the employment numbers will return to pre-COVID-19 levels.”
The economists also blamed inaction by the federal government for worsening New Mexico’s conditions.
They wrote: “The three months making up FY21 Q1 were the worst three months of the state’s economic impact from COVID-19, comparing gross receipts data with the same period a year ago, despite 14 counties experiencing a year-over-year increase. The impacts were significantly worse due to lapsing federal support and no new federal aid package. Importantly, the federal bonus for unemployment benefits of an additional $600/week expired, reducing consumer spending power.”
The state’s data also showed Quay County spikes in initial jobless claims in early April and mid-July — about the same time Gov. Michelle Lujan Grisham ordered new business restrictions after rises in coronavirus cases.
Compared to the same period a year ago, Quay County also saw declines in gross-receipts tax revenue during the July-to-September quarter in arts, entertainment and recreation (minus-30%), accommodation and food services (minus 14%), transportation and warehousing (minus-14%), wholesale trade (minus-22%), healthcare and social assistance (minus-32%) and information (minus-42%).
However, the county also saw huge GRT revenue jumps in construction (247%) and manufacturing (336%) in the last quarter compared to the same period a year ago. Those are attributable to large bridge or highway construction projects on U.S. 54 in Logan, old Route 66 near San Jon, Interstate 40 near Montoya and the Mountain Road project in Tucumcari.
As a result, those construction projects fueled the county’s overall GRT revenue growth of 24% during that quarter compared to a year ago.
Tax revenue from retail trade in Quay County rose by 2% during the last quarter compared to a year ago.
The state of New Mexico saw its gross domestic product decrease by 7% year-over-year in during the previous quarter. Fourteen counties saw a year-over-year increase in matched taxable gross receipts, though the state as a whole experienced a decrease of 9%.
Despite the drop, the largest category, retail trade, recorded a 7% increase in GRT collections.
The data were compiled from the U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, New Mexico Department of Workforce Solutions and Taxation and Revenue Department.