A new federal jobs report reveals Louisiana’s employment progress in August was negligible regardless of an outsized drop within the state’s unemployment charge.
“Though Louisiana’s unemployment charge dropped from 6.6 to six.2 (p.c), the explanation for this lower was not as a result of individuals had been discovering jobs. As an alternative, the lower was pushed by individuals giving up and leaving the labor market all collectively,” mentioned Eric Peterson, a coverage director on the New Orleans-based Pelican Institute. “For each 10 individuals returning to work in Louisiana, seven have left the labor market.”
Just like many states, Louisiana has struggled to achieve pre-pandemic employment ranges. Hurricanes and the COVID-19 delta variant surge have performed a job, as have direct fee stimulus checks, expanded federal packages such because the Youngster Tax Credit score growth and unemployment insurance coverage will increase.
In keeping with the U.S. Bureau of Labor Statistics, Louisiana’s civilian labor pressure decreased by 3,436 individuals in August and by 30,000 individuals since August 2020 – an indication the state’s labor market is completely different than what the official unemployment charge represents.
The civilian labor pressure is outlined as individuals age 16 and older who should not energetic responsibility navy members, incarcerated people or these residing in elder care, well being care or institutional amenities.
Louisiana’s employment information comes because the nation underperformed as an entire. The Bureau of Labor Statistics reported 235,000 jobs had been added to the financial system in August, regardless of expectations of 720,000 new jobs.
The Louisiana Workforce Fee (LWC) mentioned the state stays about 122,000 jobs behind the March 2020 pre-pandemic determine of 1.97 million jobs. With Hurricane Ida disrupting personal sector employment because the storm’s Aug. 29 landfall, September figures might be worse.
Weekly unemployment claims have skyrocketed within the wake of Ida. The LWC reported 13,782 new claims for the week ending Sept. 11, the most-recent information obtainable. The company reported 2,080 new claims for the week earlier than the Class 4 storm.
“These numbers don’t mirror the fact of the state of affairs we discover ourselves in right this moment,” LWC Secretary Ava Cates mentioned upon the discharge of Louisiana’s new jobs information. “Individuals are nonetheless struggling after Hurricane Ida, and we’re in the course of hurricane season. We’ve got quite a lot of work to do to verify individuals can nonetheless discover work in our state and have the cash they should get them by means of troublesome instances.”