Two weeks ago, television news was filled with reports of the large increase in national unemployment claims, and the local media followed suit.
We were told New Mexico reported the state had processed 31,849 new claims. That was an increase from 700 the previous week. [1]
This past week the increase was old news and not reported anywhere, except, of course by the state. The number was 28,344, [2] for a total of 60,193 in the two reporting periods.
No details have been provided by county or type of employer. Española may be in an ironic position of having an economy that’s weak in normal times because it’s dependent on the government, rather than private enterprice, but somewhat insulated from layoffs by the nature of those government jobs.
The national lab is the biggest employer in the area. According to Wikipedia, LANL provides paychecks for 12% of the local workers. [3] It hasn’t shut down, and, so far as I know, hasn’t cut back on the maintenance work that pays so many local men. However, I also do not hear traffic or see cars moving across the river when people are going to and from Los Alamos.
Of course, we know the largest factor motivating the lab to continue its support functions may be the fear that if it doesn’t spend its allotted budget by October 1, funding will be cut in the next fiscal year. It wouldn’t be the first time institutional preservation carried a higher priority to managers than lowly skilled tradesmen.
Five of the other top employers in the city also are government: the city schools, college, gaming commission, city, and county offices. The state also employs many. We know the schools are closed, while other offices have limited the hours they are open to the public.
The pueblos closed all their businesses, the casinos, hotels, and restaurants. The Northern Pueblos Gaming Council probably still is open because many of its reporting functions continue.
The other large employers are deemed essential businesses: Walmart, Lowe’s, and the hospital. These are the people who are at the greatest risk of being infected by a stranger. In the other work locations, contact with outsiders is minimal, and individuals only have to worry about their co-workers.
For instance, today is trash day. The people who drive and service the trucks are critical to disposing waste. The ones on my route work in small teams of two, possibly three men. They know each other, and hopefully peer pressure will keep them safe. I doubt a man would dare sneeze in the presence of others.
Cashiers in Walmart and Lowe’s probably are more vulnerable than the ones in the smaller stores I tend to use. It’s simple mathematics: the more customers, the more risk. Whether or not the relative income level makes a difference won’t be known until the pandemic is over and experts can evaluate the data.
The fourth largest employer in the city, AKAL Security, is the only one that is a locally owned private enterprise of the type that sustains economies in other parts of the country. Many of its customers may have closed.
The others who probably lost their jobs work in the smaller business, or the cash economy. One quickly learns in Santa Fé there are customers who simply refuse to pay the gross receipts tax, and insist on paying in cash. There also are small entrepreneurs who prefer being paid in cash for the same reason. Now those people will have a hard time establishing a claim without risking scrutiny from the state tax offices. They suggest the actual level of unemployment is greater than the unofficial numbers.
Sources:
1. New Mexico, Department of Workforce Solutions. "Unemployment Insurance Claims for March 19 through March 26." News release. 27 March 2020.
2. New Mexico, Department of Workforce Solutions. "Unemployment Insurance Initial Claims for March 27 through April 2." News release. 3 April 2020.
3. Wikipedia. "Española, New Mexico."
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