Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economy topic
No spam. Unsubscribe anytime.
City economist presents 2025 outlook: revenue up, unemployment modestly higher; permits and cannabis sales diverge
Summary
Monica Torres, city economist, reported a 2025 local revenue increase (≈9.6%), modest rises in employment and labor force, a small increase in unemployment to about 4.3–4.4%, a 12% drop in new residential permits and a 10% decline in total cannabis sales compared with the prior year.
Monica Torres, economist with the City of Las Cruces Economic Development department, presented the city’s 2025 economic outlook during the same work session, summarizing national influences and local indicators.
Torres reported national inflation at an estimated 2.7% for 2025 and described the Federal Open Market Committee’s federal‑funds target at 3.5–3.75%. "The future of the rate is data dependent," she said, noting labor‑market trends and geopolitical factors shape near‑term monetary policy decisions.
On local conditions, Torres said the city’s labor force and employment increased compared with 2024 (excluding an October data lapse), while the unemployment rate rose to roughly 4.3–4.4%. City revenue increased by about 9.6% (roughly $12.6 million), and all‑industry taxable gross receipts rose about 4.4% to an estimated $4.3 billion, with retail trade, health care/social assistance and construction as the largest contributors.
Permit and business trends: new business registrations rose 24% to 649, while new residential construction permits declined about 12% to 571. Staff clarified multifamily projects are recorded as commercial permits, which affects year‑to‑year residential permit comparisons. Mortgage costs remain elevated (Torres cited a 30‑year mortgage rate around 6.6%), which can constrain housing purchase affordability.
Cannabis market: Torres said total cannabis sales fell about 10% to $33 million and transactions declined approximately 2%; excise and license receipts also moved lower in year‑over‑year comparisons.
Looking ahead, Torres characterized 2025 as a year of slower but still positive growth relative to 2021–22; she invited council members to request additional data or quarterly updates and provided a link to the quarterly economic outlook for further detail.
No council action was taken on the economic presentation; the session concluded with the adjournment vote.
