The coronavirus pandemic could result in an unemployment rate above 20-percent in Louisiana. Economist Loren Scott estimates 349,000 unemployment claims for the month of April, because of the economic shutdown.
“If these numbers are any where near the mark that means our unemployment rate will go up from about 4% to around 22%,” said Scott.
The Tax Foundation estimates about 16% of the workforce has applied or is receiving unemployment benefits in Louisiana.
Scott says low oil prices will prevent Louisiana from bouncing back as fast as other states.
“That will be especially true for our oil patch, Houma and Lafayette,” said Scott.
Scott made the comments during the first meeting of the Louisiana Economic Recovery Taskforce which legislative leaders formed in an effort to provide the Legislature with policy recommendations on how to jump-start the economy.
Chairman Jason DeCuir says the regular legislative session is expected to resume next month and lawmakers are looking for immediate triage ideas by May 7th.
“It’s going to be quick, it’s going to be our first task, but it has to be done, because I know the House Speaker and the Senate President are going to be looking for these ideas immediately,” said DeCuir.
Decuir says a special session dealing with the economic recovery issues is expected later this year, so the task force will also have a chance to develop long-term solutions.
House Speaker Clay Schexnayder has confidence in the group of private-sector business leaders they have on this task force.
“I think this is a national championship team we’ve got right here, I think when we get done with this, we are going to set the bar on how to bring the economy back,” said Schexnayder.
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