According to Louisiana Tech’s Center for Economic Research’s first Economic Abstract of the state’s economy, employment has increased but it’s not at pre-pandemic levels yet. Center Director Dr. Patrick Scott said there are two ways to possibly increase the workforce.
“Either changing the incentive structure or the circumstances around employment shifting in such a way in order to reengage those workers, whether that’s COVID fundamentally resolving itself or some other type of policy response,” said Scott.
Scott said he doesn’t see the pandemic resolving anytime soon.
Scott said in a recession you tend to see a decrease in the production of goods and services and personal incomes are also down but presently that’s not the situation with personal income. Scott said stimulus payments and generous unemployment payments increased the average income and the demand for higher wages.
While unemployment has improved the state is still down 132,000 jobs from pre-pandemic levels. Scott said estimates are that up to 85,000 have left the workforce in Louisiana.
“These are either individuals that retired early or the calculus has changed for them in terms of engaging the labor market. Maybe there are childcare issues and so it’s difficult for them to re-enter the workforce or something else has changed fundamentally,” said Scott.
For much of 2020 and this year, there’s been a robust demand for housing, in part to low-interest rates, but Scott said the market is beginning to cool.
“Because the existing inventory is kind of starting to run a little thin, but compared to historical numbers, we’re doing still relatively well,” said Scott.
He said most of the housing movement is in existing homes, not new housing starts which has pushed prices higher than what they should be.
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