According to Loren C. Scott and Associates’ economic outlook, the Bayou State is expected to add 14,300 jobs next year and more than twice that in 2024. But Economist Dr. Loren Scott said that’s still 38,000 jobs short of the pre-pandemic employment level.
“We’re actually the second worst state in the nation in terms of recovering from COVID job losses. One of the things you’re going to see happen over the next two years is we’re going to naturally start to grow because we’re recovering those jobs,” said Scott.
Scott predicts there will be a significant growth in industrial construction jobs to support infrastructure projects in Baton Rouge, New Orleans, and Lake Charles.
He said there are also areas of the state that were impacted by Ida that will naturally recover and it will cause the economy to grow. Scott said that’s important to note because of a likely national recession next year.
“But I think it’s going to be one of those rare occasions, well not really all that rare occasion, in which the Louisiana economy’s employment grows right through the recession,” said Scott.
For Louisiana, Scott said that’s happened four times out of the last eight national recessions and he expects the southern half of the state will see the majority of job growth.
As for recession predictions, Scott believes it will occur in the first quarter of 2023 and last until the third quarter and it will be relatively short because the federal reserve has to do something to curb our current inflation.
“And the techniques that they use to fight that inflation including raising interest rates have a tendency to slow the economy down and I think it’s going to actually slow it down enough to go into a recession,” said Scott.
And after the country recovers from the 2023 recession Scott said expects Louisiana will see a growth of some 30,800 jobs in 2024. He predicts that interest rates will drop, and the housing industry will rebound.
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