Economy
Five years after Hurricane Katrina, the best way to describe the economic landscape in New Orleans is “mixed.” Corresponding to the loss in population, the city and metropolitan region have lost a tremendous number of jobs. At the same time, the region has been relatively insulated from the recession, largely as a result of billions in recovery spending. While unemployment has risen in recent months, the New Orleans area still has an unemployment rate that is lower than Louisiana’s, the South region’s, and the nation’s. The biggest economic uncertainty facing the region, however, is what its primary economic drivers will be once the recovery spending dies down. New Orleans is seeing the emergence of some new economic engines, such as the biomedical sector and film/television production, but job gains in these fields may not fully compensate for job losses experienced in other sectors.
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In the last several months, the New Orleans region has experienced major economic upheaval. The Gulf oil spill, the subsequent moratorium on deepwater drilling, and the announced closure of Avondale shipyards collectively threaten thousands of regional jobs. The ultimate economic severity of these events is unknown, but in the short term, they constitute a major threat to the regional economy and job market. |
One of the most promising aspects of the regional economy is the emergence of entrepreneurial activity and knowledge-based industries. The region is poised to experience major growth in the biomedical sector with over $2 billion in investment toward medical and research facilities. The recent completion of Second Line Stages studios underscores the region’s emergence as a hub of film and television production. New Orleans is also becoming increasingly recognized as a center for entrepreneurial activity. Whether these emerging sectors can replace the jobs lost in traditional mainstays of the economy is one of the foremost questions that the region faces in the coming years.
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