January 10, 2013

UNO Metro Report: New Orleans Area Economy Grows Modestly

Economic GrowthThe New Orleans area economy grew modestly over the first three quarters of 2012, with total employment increasing by 0.4 percent year-to-date, according to the latest edition of the University of New Orleans Metropolitan Report. The report, compiled by UNO’s Division of Business and Economic Research, is a quarterly publication containing analysis of recent trends and the short term outlook for the New Orleans metro area.

 Substantial job losses in some industries such as construction, manufacturing of transportation equipment and retail trade, were offset by employment gains in other industries, such as leisure and hospitality, educational services, and professional and business services. While the overall employment gains in New Orleans were down from the second quarter in 2012 by 0.7 percent, the gradual upward trend from the first months offset the losses during the most recent months.

Here are some highlights of the December 2012 Metro Report:

  • Total employment in the New Orleans metropolitan area increased by 0.4 percent, or by approximately 2,000 jobs, during the first three quarters of 2012.
  • Substantial job losses in some industries, such as construction (4,000 jobs), manufacturing of transportation equipment (1,500 jobs), and retail trade (1,000 jobs),were offset by employment gains in other industries, such as leisure and hospitality (3,500 jobs), educational services (2,100 jobs), and professional and business services(1,600 jobs).
  • While the overall employment gains in New Orleans were down from the second quarter in 2012 by 0.7 percent, the gradual upward trend from the first months offset the losses during the most recent months.
  • The unemployment rate in the New Orleans metro area decreased from 7.5 percent to 6.7 percent at the end of 2011, but increased to 7.4% between the first and third quarter in 2012.
  • Local initial unemployment claims increased by 36% over the third quarter of 2011 due to the effects of Hurricane Isaac. Continued unemployment claims decreased by 21% over the same time period.

The UNO Forecasting Model provides current indicators along with detailed forecasts of economic activity in the New Orleans metropolitan statistical area. The area includes Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist and St. Tammany parishes.

To view the full report, click here >>