More N.O. area job losses forecast

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The New Orleans metropolitan area gained 1,100 jobs in the year ending March 31 only because of a 3,900-job increase in state and local government employment, according to a study by the University of New Orleans. An economic forecast for the region said the area will lose 2,200 jobs before June 30, then gain 5,500 over the next 12 months—provided the United States is pulling out of the recession.

The study said the largest employment gains between the first quarter of 2008 and the first quarter of 2009 were registered in state government with 2,700, construction with 1,700 and local governments with 1,200. UNO said the gain in government jobs was tied to the sectors of education and health care. Over the past two years, the nature of construction jobs has changed, the report said. In 2007, the sector was dominated by construction at refineries and commercial buildings. By 2008, construction of roads, bridges and flood control projects had taken over. The biggest losing sectors were in administrative support with 1,900 jobs and financial services with 700.

According to UNO, metropolitan area employment now stands at about 526,000 jobs, about 87% of the employment prior to Hurricane Katrina in August 2005. Retail sales in the region dropped 3.9% during the first quarter, but were still 20% above pre-Katrina levels.

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