The COVID-19 outbreak has wreaked havoc financially on New Mexico. This has left many of our business owners struggling, while the short-term outlook for these businesses can vary greatly. Many businesses are impacted with closures or reduced occupancy. This has resulted in economic impact numbers being compared to the Great Depression or most recently the 2008 Recession. New Mexico was one of the last states to recover from the 2008 economic recession, so how we manage this recovery will determine the short term and long term impact on New Mexico.
Consumer spending in the United States is one of the biggest drivers of the economy and it can predict how the economy recovers and any lasting impacts. Since the COVID pandemic began in March, New Mexico’s consumer spending has decreased by 13.3%* and leaves the state ranked 47th .
- New Mexico -13.3% (Sandoval County -12.6%, Bernalillo County – 14.8%)
- Colorado -10.7%
- Arizona -7.9%
- Oklahoma -7.6%
- Texas -7.4%
What is driving the loss in the revenue?
- Entertainment -63.4%
- Transportation -52.2%
- Restaurants/Hospitality -50.4%
- Healthcare -30%
- Apparel -21.7%
- Grocery +13.7%
Source - Opportunity Insights
Small Businesses are being impacted much more than large businesses or construction contractors.
- 18.6% of Sandoval County businesses have closed while 14.3% of Bernalillo County businesses have closed
- Sandoval County small businesses revenue loss is 29.9% while the entire Albuquerque MSA has lost 29.3%
Covid-19 Pandemic has been mid to low wage worker recession. As of June 27th, high wage workers in the Albuquerque MSA have increased employment by 8.4% while mid-range has increased 1.5% and low wage workers are down 7.5%. These numbers are when restaurants were still open indoors and employers have PPP funding to keep employees on the payroll. Since June, mid-wage and low wage workers have experienced an increase in layoffs due to the pandemic and this includes restaurants having their indoor capacity closed, while bars and entertainment centers are still not open.
Our locally owned businesses are crucial to our economy and support our community’s youth, nonprofits and a wide range of other local programs. We need to support our local businesses as they impact our economy in so many ways with 67 cents of every dollar staying in New Mexico,
As a community we are managing to keep positive tests low in Southern Sandoval County/West Albuquerque, every business thanks you for your efforts. Hopefully this week’s new government order will allow restaurants to reopen their indoor seating to a manageable capacity and allow our bars/entertainment venues to reopen following COVID Safe Practices. Supporting our local businesses will help the local economy recover at a faster rate and bring jobs back. Buy Local, Be a Hero - Wear a Mask!