EL PASO, Texas (Border Report) – The region’s trade has benefited from the lifting of border travel restrictions, although a strong dollar is squeezing the spending power of northern Mexico consumers.
So says the University of Texas at El Paso’s latest Borderplex Business Barometer report, which claims that the economy in the El Paso-Las Cruces-Juarez region is continuing its economic recovery despite chain supply disruptions and the overdue spike in COVID-19 cases to the omicron variant.
“Despite all the disruptions, uncertainties and health concerns, the local economy has grown quite robustly in 2021,” the UTEP report said. “Above average vaccination rates have made it possible to lift many lockdown restrictions across the Borderplex. In response, labor market conditions improved significantly.”
The November unemployment rate in El Paso fell to 5.0 percent after hovering around 15 percent at the height of the pandemic in 2020. Las Cruces, New Mexico is just a step behind with an unemployment rate of 5.3. The healthcare and hospitality (hotels) sectors expanded in both cities.
Across the border in Juarez, Mexico, manufacturing activity remains strong despite supplier problems and the weak peso is attracting more foreign investment, the report said. “All in all, the Chihuahua state economy has performed very well in 2021 (with strong industrial activity), which has helped retail activity topped 2019 levels for most of the first three quarters of the year.”
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The return of cross-border retail did not lead to waiting times at US ports of entry as had been feared. “Wait times at the border have not increased significantly as careful planning efforts by U.S. Customs and Border Protection have been successful,” the report said.
This is an indication that CBP is adjusting staffing levels at ports of entry based on demand and local partnerships. The City of El Paso allocates up to $1.67 million annually to the P3 program, which pays customs officials overtime to expedite vehicle traffic at international bridges.
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