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  • Affordable housing aims to charge amount more in line with level of wages in service, hospitality and construction

A shortage of employable workers, tied in part to the lack of affordable housing, continues to plague New Mexico, especially tourist areas such as Ruidoso, despite an increase in Lincoln County unemployment during the month of June.

Preliminary figures released by the New Mexico Department of Workforce Solutions show unemployment in the county grew from 4 percent revised in May to 4.8 percent in June, which was the same number posted in June 2018. The labor force expanded in June by about 400 individuals to 9,440.

For the same month, New Mexico’s seasonally adjusted unemployment rate was 4.9 percent in June 2019, down from 5 percent in May 2019 and up from 4.8 percent the previous year. The national unemployment rate in June was 3.7 percent, up from 3.6 percent in May 2019 and down from 4 percent in June 2018.

Retail numbers were down in the report from Workforce Solutions, but shoppers abound in Ruidoso this summer.

In other areas of southeastern New Mexico the trend continued.

Lea County posted 4.7 percent in June compared to 3.6 percent in May; Chaves County posted 5.7 percent compared to 4.4 percent in May; Otero County posted 5.6 percent compared to 4.5 percent in May; Eddy County jumped from 2.8 percent in May to 3.5 percent, slightly below 2018 in June of 3.7 percent.

Jobs not connected to agriculture, leisure and hospitality reported the largest employment increase statewide with a gain of 5,300 jobs, or 5.3 percent, according to Ricky Serna with the department's Economic Research & Analysis Bureau.

Mining and construction employment increased by 5,000 jobs, or 6.9 percent. Within that category, construction was up 3,000 jobs, or 6.3 percent.

Labor force shortages

Those two industries, leisure-hospitality and construction, significantly affect the Ruidoso area, said Tim Dodge, village Community Development director.

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"As you go around town, you see signs up in the majority of businesses saying 'Now Hiring,'" he said. "Almost any service business you go to is searching for workforce."

The service industry and construction industries are the two hurting the most, he said.

"Those types of jobs in restaurants and motels and hotels aren't being filled," Dodge said. "Then the builders are telling us they have a lot of work going on, but they don't have the labor pool available to hire competent people who will show up to work and have the skills to go out there and do framing, or plumbing or electrical work."

He was pleased to see state administration and education officials renew emphasis on training high school students and graduates for the trades, he said.

"The citizens advisory committee that has been working with (Eastern New Mexico University-Ruidoso) has recognized that as well," Dodge said. "The university is starting to talk about bringing those types of training opportunities where they actually get into the trades."

Although national economists describe the economy in New Mexico as excelling, they cite the labor force as being the inhibiting or slowing factor, he said.

Adventure Island opened in time for Memorial Day weekend, and nw has a mobile vending attachment.

"That's exactly what you are seeing in Ruidoso," Dodge said. "The village is taking off and everyone is doing well, but if you don't have the workforce, how can you continue that type of growth. And if the workforce doesn't have a good place to live, they will have to travel in from out of town, and then with the commute, it becomes unfeasible for them."

Labor force housing

The cost of housing in tourist areas such as Ruidoso can be high while wages remain low, making it difficult for workers to live n the community where they work, he said.

Ruidoso officials have been proactive in trying to develop housing for the local workforce, including village employees and people in fields such as teaching, trades, nursing, law enforcement and other first responders. Councilors passed an ordinance that would allow revenue bonds to be sold for a workforce housing project, and they advertised to sell some village land outright in midtown to generate revenue for a project, he pointed out.

The village issued a request for proposals for a housing project and currently is negotiating an agreement with Chelsea Investments Corp., the qualified grantee, Dodge said. Company officials are scheduled to come back to the village in less than six months with a proposal on how they plan to proceed, he said.

On its website, the California-based firm stated, "Chelsea Investment Corporation is focused on creating and preserving high quality affordable rental homes."

Chelsea is considering two pieces of village property for a project, a 3.9 acres tract on Wingfield Street next to public parking, and six acres at the back of the Forest Lawn Cemetery on Mechem Drive that is not suitable for burial sites, but could accommodate multiple or single family housing..

"One of the other things we are doing is a Housing Fair Sept. 7, at the convention center  bringing in several federal and state agencies and local organizations that have anything to do with housing from credit counseling to mortgages to Realtors  trying to match up the people who may need services with the service providers," Dodge said. "There also will be an opportunity for weatherization and rehabilitation programs, not just to purchase."

Another local push is to train a new workforce in solar and wind energy, said Jim Miller, Placer Mountain Services Management Consulting.

"Currently, there isn't any training for solar industry except four community colleges around the state, just not in this area," he said.

Mesa Lands Community College in Tucumcari, the Center for Wind Energy is the trainer in New Mexico and is trying to expand to Torrance and Lincoln County.

"We've been doing some grant writing lately in those fields and the forecast is really good for New Mexico in both wind and solar, as well as oil and gas. All of those industries will struggle trying to find sufficient workforce. There's a lot of opportunity for young people but that have to learn the work skills and habits, finish high school or get a GED and there will be all kinds of opportunities," he said.

Overview

According to the bureau's report from Workforce Solutions, total non-agricultural payroll employment grew by 15,200 jobs, or 1.8 percent, between June 2018 and June 2019. Most aggregate gains came from the private sector, which was up 13,900 jobs, or 2.1 percent.

The public sector was up 1,300 jobs, or 0.7 percent. The private service-providing industries were up 8,400 jobs, or 1.5 percent, while the goods-producing industries were up 5,500 jobs, representing a gain of 5.5 percent. Six private industries added jobs and three lost jobs.

Tourism generates a chunk of gross receipts tax and lodgers tax for the village of Rudoso, but many related jobs are low-paying.

Mining added 2,000 jobs, which represented over-the-year growth of 8.0 percent.

In other statistics:

  • Employment in education and health services increased by 3,400 jobs, or 2.5 percent. Most growth in the industry occurred within health care and social assistance, which was up 3,000 jobs, or 2.5 percent.
  • Professional and business services employment was up 2,300 jobs, or 2.2 percent. Financial activities reported a gain of 600 jobs, or 1.8 percent.
  • Employment in retail trade decreased by 1,600 jobs, or 1.8 percent; wholesale trade was down 800 jobs, or 3.8 percent; and transportation, warehousing, and utilities reported a gain of 400 jobs, or 1.6 percent.
  • Within the public sector, local government employment grew by 1,400 jobs, or 1.4 percent. Most gains came from local government excluding education, which was up 1,000 jobs, or 1.9 percent.

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State government employment decreased by 700 jobs, or 1.3 percent. State government, excluding education was up 900 jobs, or 2.9 percent, with  state education posting a loss of 1,600 jobs, or 7.5 percent.

Reporter Dianne L. Stallings can be contacted at dstallings@ruidosonews.com