New Orleans employment grew 1% in the first quarter of 2011 when compared to the same period a year ago, slightly outpacing the national economy, which saw employment rise .9% over the same period, according to the Metropolitan Report, published by the University of New Orleans Division of Business and Economic Research. At this time, New Orleans employment is at 85.4% (520,633 jobs) of pre-Katrina levels. 89.5% of the population has returned nearly six years after Hurricane Katrina.
According to the Metro Report, the New Orleans economy has been stable in the last year, with job losses in manufacturing and government balanced by gains in leisure-hospitality and health care. Though the job situation in New Orleans is not prosperous, it has been better than the national situation. The overall employment growth fueled by the recovery post-Katrina has been forced flat by the national recession.
Here are some other highlights of the May 2011 Metro Report:
• Sectors with the largest local job gains over the year include leisure and hospitality (4,500 jobs), health care and social assistance (2,200 jobs) and information (1,900 jobs). Job gains in the leisure and hospitality industry have followed a banner year in tourism recovery.
• Government and manufacturing experienced the largest job losses in the first quarter of 2011 when compared to the same period a year ago. Government employment lost 2,400 jobs, bringing the total loss over the year to 2.9%. Manufacturing lost 1,350 jobs (4.2%), driven by recessional layoffs at the Michoud and Avondale facilities.
• Tourism had a very strong 2010. 8.3 million visitors came to New Orleans, up from 7.5 million in 2009. Visitor spending grew to $5.3 million, up from $4.3 million in 2009.
• The national unemployment rate has been decreasing and has reached 8.9% in the first quarter of 2011. The rate for the New Orleans metro area has increased for five consecutive periods, reaching 8.0%. In contrast, local initial unemployment claims have decreased 7% and local continued unemployment claims have decreased 23%.
• New Orleans area employment is expected to reach 526,325 jobs (86% of pre-Katrina levels) by the first quarter of 2013. Jobs in leisure and hospitality, professional services, and educational services are expected to add the largest number of jobs during the forecast window.
The Metro Report utilizes the UNO Forecasting Model, which provides detailed forecasts of economic activity in the New Orleans metropolitan statistical area, which includes Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist and St. Tammany parishes.
To read the full report, visit: http://business.uno.edu/docs/DBER/UNO%20Metropolitan%20Report%20May%202011.pdf.