Graduating students may have more reasons to stay in Baton Rouge after they get their degrees.
According to the Bureau of Labor Statistics, Baton Rouge ranks seventh of the top 100 largest metro areas for projected job growth through 2020.
Unemployment rates in Baton Rouge are lower than those in the rest of the country and in peer cities, according to Baton Rouge Area Chamber’s analysis of the BLS findings.
For 2010 and 2011, Baton Rouge’s average unemployment rate was 7 percent, while the national average was 9.1 percent.
“Virtually every area in the state is doing well, especially compared to the national economy,” said Loren Scott, retired professor emeritus of economics.
Scott attributes the high rank to the state’s growing petrochemical industry and utilization of the new fracking technique for extracting oil from shale.
“We’re not having growth in low-income industries. We’re talking about expanding high industries,” Scott said.
Louisiana is the third-largest producer of chemicals in the country, and the Baton Rouge metro area has the largest concentration of chemicals in the state, Scott said.
Another important factor is the presence of industrial construction workers, he said, and some of the largest firms in the state are located in the capital city.
“They are gearing up for a huge increase in capital expenditures in the area,” Scott said. “So we’re not only getting an increase in the
chemical industry, but we’re also going to get a big increase in industrial construction firms.”
Giles Whiting, executive vice president and chief operations officer of the BRAC, said the state’s diverse industries are a heavy indicator for future success.
Along with the petrochemical industry, manufacturing and digital media industries are growing as well, Whiting said, which was the predominant basis for the BLS report’s findings.
Market dynamics, such as the low price of natural gas, contribute to the state’s competitiveness, he said.
Whiting said offering industry incentives, such as tax credits for the film industry, also helps to push Louisiana ahead of its peers.
Whiting said while the BLS report is mainly derived from industry diversity, BRAC constantly compares Louisiana against other states and has arrived at similar conclusions.
“We are very optimistic for the outlook for 2012,” he said, adding that BRAC forecasts about 1 to 1.7 percent job growth, totaling about 3,500 to 6,000 new jobs.
BRAC submitted an economic outlook survey to more than 300 companies, and the majority responded that they’re more optimistic than in 2011, Whiting said, even though 2011 was a good year for the Baton Rouge economy.
Baton Rouge has added about 1,100 jobs in the last 12 months, Scott said.
Whiting said other states have been sluggish in recovering from the recession, but Louisiana has boasted a strong performance.
Scott said the high projected job growth could persuade graduates to stay in Baton Rouge after college.
“Graduates are going to go where the jobs are, and if Baton Rouge is the seventh fastest-growing area in the country, then that will help keep the graduates here,” he said.
French junior Austin Langley said while the projected job growth may sway his decision to stay in Baton Rouge, the city’s culture is what will keep him here.
“We have a strong culture here, and that’s important to have,” Langley said.
 
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Contact Emily Herrington at [email protected]