NEW MEXICO ECONOMIC DEVELOPMENT DEPARTMENT
New Mexico needs a comprehensive approach to economic development which looks at short term recovery, long-term planning, and economic diversification. EDD has worked alongside numerous stakeholders including state agencies like DWS, HED, IAD, EMNRD, regional and local governments, along with many other organizations and industry leaders to create a strategic plan and identify action steps for economic growth.
This state plan is not intended to be the final step but serve as a critical first step for unifying New Mexico’s economic development ecosystem.
Vision: New Mexico will have a diverse and robust economy that engages local talent, cultivates innovation, and delivers prosperity for all New Mexicans.
New Mexico’s business community needs to adapt to rapidly changing times and be prepared to pay higher wages, increase schedule flexibility, and provide greater options for working parents, caregivers, and adult learners to attract employees.
New Mexico’s business community and economic development activists need to join calls for increased EDD funding from the legislature and provide financial assistance to their local EDOs and COGs to put more boots on the ground, increase capacity to go after massive federal funding, and grow resources to support their local business communities.
EDD, HED, and the higher education system need to collaborate to give incoming students the information necessary to choose careers in high-demand areas, and to tailor degree and certification programs to better reflect the needs of current and future industry in New Mexico—all to reduce the mismatch between employer-required skills and skills obtained at New Mexico’s colleges and universities, giving students the best possible chance for high-paying careers in New Mexico.
Policymakers need to recognize that major changes to the economy to lift wages, strengthen New Mexico’s private sector, and diversify for a more resilient economic base will require significant funding for EDD and economic development programs. New Mexico cannot continue on the path it has pursued in prior years—this plan provides a new path forward, and the state must now provide funding and take action.
Collaboration between economic development stakeholders.
Attraction and retention of talent in urban, rural, and tribal communities.
Alignment between higher education and industry.
Engagement of socioeconomically disadvantaged communities in planning processes.
Development of New Mexico’s innovation ecosystem.
Diversification NM’s economy with focus on the 9 targeted sectors.
In the decade following the Great Recession, the state fell behind national job growth rates. Leading up to the Covid-19 pandemic, New Mexico began exceeding the national rate. The state needs to carry this momentum forward.
New Mexicans have never earned as much as the national average, but wages grew alongside the national rate for decades. Following the Great Recession, wage growth in the state slowed, and the gap with national average wages grew. The state is taking steps to stop this divide and needs to focus on the higher-paying target industries to narrow the gap.
New Mexico became increasingly dependent on revenues from this one industry over the last two decades, making the state susceptible to wild swings in revenues following oil and gas boom and bust cycles. The state needs to diversify to stabilize its revenues.
Annual Average Pay
Number of Employees
Percentage of County Population That is Employed
Venture capital funding for new and growing businesses in New Mexico falls well below peer states on a per capita basis. This graph shows the relative VC investment levels by state over time and the industry in each state receiving the most funding.
Total Capital Invested
New Mexico EconomicDevelopment DepartmentJoseph M. Montoya Building1100 S. St. Francis DriveSanta Fe, NM 87505-4147
Mailing Address:New Mexico EconomicDevelopment DepartmentP.O. Box 20003Santa Fe, NM 87504-5003
Main number: (505) 827-0300 (se habla español)Fax: (505) 827-0328
The mission of the New Mexico Economic Development Department is to Improve the lives of New Mexico families by increasing economic opportunities and providing a place for businesses to thrive.
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