The Louisiana Economic Activity Forecast for the second quarter of 2022 has reduced the projected number of jobs the state was expected to add by 40-percent. University of Louisiana at Lafayette economist Gary Wagner says the latest forecast now has the state adding 21-thousand jobs over the next year.
“With inflation numbers being what is and the federal reserve expecting to raise interest rates much more aggressively than they were six months ago, we are forecasting significantly slower growth in this state,” said Wagner.
Wagner says the number of jobs remains about 5-percent below pre-COVID levels, which is about 81-thousand jobs. A full recovery is not expected until 2024. He says the Houma-Thibodaux and Lafayette metro areas are expected to experience the fastest job growth in the state.
“Mainly being bumped up a little bit by oil prices, also the New Orleans metro area is projected to see the strongest growth,” said Wagner.
Wagner says consumer spending remains relatively strong, but vehicles and recreational goods saw a decline in the first quarter of this year.
“We are already starting to see consumer spending to slow a little bit, particularly in big-ticket items where people are borrowing, so I am expecting the housing market to slow in the latter half of the year,” said Wagner.
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