SWLA JOBS & ECONOMY on the rebound
by Daniel Groft, PhD.
Hurricanes Laura and Delta made landfall almost one year ago. These storms caused unprecedented devastation in our region amid the backdrop of the COVID-19 pandemic causing unparalleled worldwide economic damage. The Lake Charles area experienced a large drop in economic activity as illustrated in the graph of employment. The storms caused billions of dollars in damage to housing, automobiles, businesses, and agriculture, and led to the relocation of many citizens. In just one month, the area lost over 8,500 jobs and the unemployment rate in the area shot up to 12.6% (the highest level since Rita).
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We are fortunate that employment in the region is finally slightly above pre-storm levels and the unemployment rate has come down. This jobs recovery has been slow and steady. The area has also seen recovery in important economic variables such as gaming revenues, exports, and taxable sales. Nonetheless, there is a great deal of work left to be done. Many structures are still awaiting repair and numerous citizens remain displaced. Southwest Louisiana is still, along with the rest of the nation, some distance away from prepandemic levels of economic activity. The economic rebound has hit obstacles along the way. The area experienced an ice storm in February and a flood in May. The floods, severe storms, and tornadoes were declared a federal disaster on June 2, 2021 affecting not only Calcasieu but Lafayette and parishes in the Baton Rouge area. FEMA has approved over $9 million in individual assistance from almost 2,000 applications so far. Estimates from a report commissioned by Louisiana Economic Development bring to light more of the economic effects of this event. The overall economic damages to the entire state were estimated to be almost $319 million. As the rains dropped more than 12 inches of water in Calcasieu, the flooding caused interruptions in over 2,000 parish businesses affecting almost 25,800 employees.
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This caused a drop of almost $21 million in the parish’s gross domestic product. It was also estimated that 1,300 residential housing structures experienced damages amounting to almost $50 million. There were also severe damages to automobiles, commercial building structures, and agriculture. Southwest Louisiana has gone through unprecedented trials. While much of the coverage has justifiably been focused on pandemic and storm recovery, it must be remembered there was great damage caused to our region and state from these other events. In July, 2020, mayor of Lake Charles, Nic Hunter, was in Washington, D.C. requesting billions in Federal Supplemental Relief. This supplemental disaster relief has been called for from all in the state since the storms. The disasters we’ve experienced have caused billions of dollars in damage to all facets of the economy as well as widespread hardship in our lives. After all the challenges Southwest Louisiana has faced, the benefits of receiving this aid would be crucial in rebuilding back faster and better for the long-term. Dan Groft is Associate Professor of Economics at McNeese State University, the Director of the Drew Center for Business and Economic Analysis (mcneesedrewecon.org), and an economist with the SWLA Alliance.
2021 - Annual Issue
