Louisiana leads the nation in unemployment rate growth from November to December but still maintains one of the lowest rates in the country.
Louisiana’s unemployment rate rose from 6.7 percent in November to 7.5 percent in December, according to preliminary figures released last week by the Bureau of Labor Statistics.
The rate increased 0.8 percent, which the bureau classified as “statistically significant.”
However, the national average for December was 10 percent.
Louisiana’s unemployment rate is tied for 14th lowest in the nation and third lowest in the Southern region.
The rise in unemployment showed a stable trend, returning to levels seen for most of second half of 2009, according to a Louisiana Workforce Commission news release.
“The trend shows a fairly even picture going back to July 2009, and it shows we’ve consistently outperformed the nation and the South,” LWC Executive Director Curt Eysink said in the news release.
Dek Terrell, economics professor, said Louisiana has not always been known for having the lowest unemployment rates.
“We had some of the highest rates in the ’80s, when the business and chemical industries were struggling,” Terrell said.
Terrell said the state’s unemployment rates are low today because the rebuilding of New Orleans in the wake of Hurricane Katrina in 2005.
The rebuilding process created hundreds of job opportunities in the state.
“One in every 14 people in our economy are unemployed,” Terrell said. “That is good relative to the rest of the country.”
Terrell said Louisiana’s economy relies strongly on petrochemical industries, which are more resistant to the recession than manufacturing industries.
“When the stock market drops, people spend less money on big-ticket items,” he said. “But the petrochemical industry remains fairly consistent.”
The manufacturing of durable goods, like automobiles, appliances and retail items, are some of the most affected jobs in a recession, Terrell said.
Terrell said he also attributes the state’s relatively successful condition to fewer problems in the housing market than elsewhere in the country.
“We didn’t have the samedegree of housing bubble that places like California did,” Terrell said. “We didn’t see housing prices go up nearly as much in Louisiana.”
Sara Crow, assistant director of Career Services, said it’s more difficult to get jobs in today’s market, but University graduates are still succeeding.
However, she said she’s been seeing more alumni seeking the help of Career Services than in the past.
Crow said Career Services works to prepare students for all different kinds of employment.
“People don’t typically stay in the same job for 40 years,” Crow said. “People may end up having several jobs.”
Crow said students should open themselves to a variety of different career paths and learn to fully explore all job opportunities in their major.
“Don’t close yourself off,” Crow said. “That would be a big mistake in today’s economy.”
Because of the economy, companies have had to adjust their recruiting budgets, Crow said.
Crow said the University is still able to draw in recruits, but next Tuesday’s Career Expo will only be featuring 100 employers, when they normally have around 150.
“Due to the state of the economy, networking is more important,” Crow said. “We have to get students out to that event.”
——Contact Sarah Eddington at [email protected]