A prolonged federal government shutdown could have perilous consequences for New Mexico’s fragile economy, rippling across multiple industries in a state that relies more than most on federal spending. At least one economist warns the budget impasse could thrust the state into another recession if it continues past next week.
New Mexico has more than 32,000 federal workers. And because it’s a small state, that number represents 3 percent of the labor force, which is higher than the national average. Likewise, military workers make up 1 percent of the state’s workforce, a percentage twice the national average, said Christopher Erickson, associate professor of economics at New Mexico State University.