New study examines military bases' impact on New Mexico labor economy

Nicholas Gilmore, The Santa Fe New Mexican
·2 min read
2

Oct. 3—A new study examining four military installations in New Mexico for the first time puts a number to the economic impact of the U.S. military's presence throughout the state.

"The 52,268 direct, indirect, and induced jobs generated by these installations is equal to roughly double that of mining, quarrying, and oil [and] gas jobs in the State during 2020," economist Omar Solis writes.

The study — released by University of New Mexico's Bureau of Business and Economic Research and commissioned by the state Office of Military Base Planning and Support — analyzed data from 2019 from Cannon Air Force Base (including Melrose Air Force Range), Holloman Air Force Base, Kirtland Air Force Base and White Sands Missile Range.

Solis's analysis of wages, spending patterns and other data estimates the four military installations generate $2.8 billion in labor income and a combined industrial output of more than $14 billion.

"This analysis shows that these installations and the employees who work there — both active and retired — are vital as we grow our economy and maintain our quality of life,so families stationed in New Mexico or who come here for a military career, want to remain in New Mexico after they retire," state Economic Development Cabinet Secretary Alicia J. Keyes said in a news release.

The study also presents data on the state's 141,558 veterans, who make up 8.8 percent of the adult population.

New Mexico veterans' incomes are on average 64 percent higher than those of nonveterans, making the state the second-highest in the country — behind Virginia — in the difference between veteran and nonveteran average incomes.

Military employment in the state is about 8 percent of total employment, putting New Mexico 1 to 2 percent higher on that statistic than neighboring states, including Texas.

Kirtland Air Force Base, in Albuquerque, generates, by far, the greatest economic impact of New Mexico's military installations, with a total impact on 30,126 jobs.

"The total effect of thirty thousand jobs created by Kirtland [Air Force Base] is akin to total employment in each of Manufacturing and Transportation & Warehousing industries in the State, in 2020," the study states.