Parish unemployment rate unchanged, but labor force drops

St. Mary Parish’s unemployment rate didn’t change from July to August, but the total number of people in the labor force declined by over 600 people.
The parish’s unemployment stayed at 9.8 percent from July to August. But total labor force dropped by 652 from 23,985 to 23,333 in August, according to a Louisiana Workforce Commission news release. The release cited federal Bureau of Labor statistics.
The civilian labor force comprises the total number of people who are either employed or looking for work.
A year ago, in August 2015, unemployment was at 7.8 percent and 24,202 people were in the parish’s labor force, 869 more people than were in the workforce in August 2016.
A rise in unemployment rates over the past year or so in south Louisiana has coincided with the downturn in the oil and gas industry due to low gas prices.
Nicholls State economics professor Laura Coogan said the decline in the labor force could be due to a variety of causes, including people deciding to retire or discouraged workers who have stopped looking for work. But more data is needed to determine if those things are actually occurring and if they may have contributed to a drop in the labor force, Coogan said.
In nearby Terrebonne and Lafourche parishes, August unemployment was 7.3 percent and 6.7 percent. Terrebonne had an August labor force of 51,580 compared to a 52,708-person labor force in July, a 1,128 decline in the labor force. Lafourche’s labor force went from 46,438 to 45,410, a 1,028-person dip from July to August.
From March to June, St. Mary Parish’s unemployment rate registered at 10.1 percent, 9.3 percent, 9 percent, 9.2 percent and 8.6 percent each month. The labor force for each of those months was 24,086, 23,608, 24,139, 24,268 and 23,882.
The state Workforce Com-mission release said unemployment rates fell in August in all nine Louisiana metropolitan statistical areas, according to not-seasonally adjusted data from the federal Bureau of Labor Statistics.
Not-seasonally adjusted data represent a snapshot of employment but are not adjusted for seasonal factors.
The not-seasonally adjust-ed rate for Louisiana in August was 6.7 percent, down from 6.9 percent in July. The workforce commission released seasonally-adjusted data for the state on Sept. 20.
Statewide unemployment in August 2015 was 6.4 percent. The state’s labor force dropped from 2.157 million workers to 2.136 million workers from August 2015 to August 2016.
Not-seasonally adjusted unemployment rates for the state’s metro areas in August were as follows:
Alexandria: 7.0 percent, down from 7.2 percent in July and up from 6.6 percent in August 2015;
Baton Rouge: 5.7 percent, down from 5.9 percent in July and up from 5.5 percent in August 2015;
Hammond: 7.5 percent, down from 7.8 percent in July and up from 7.3 percent in August 2015;
Houma: 7.0 percent, down from 7.2 percent in July and up from 5.7 percent in August 2015;
Lafayette: 7.6 percent, down from 7.8 percent in July and up from 6.5 percent in August 2015;
Lake Charles: 5.4 percent, down from 5.5 percent in July and unchanged from August 2015;
Monroe: 6.7 percent, down from 6.8 percent in July and down from 6.8 percent in August 2015;
New Orleans: 6.2 percent, down from 6.3 percent in July and up from 6.1 percent in August 2015;
Shreveport: 7.1 percent, down from 7.3 percent in July and up from 7.0 percent in August 2015.
Though employment statistics have shown the effects of the oil and gas industry downturn, one executive displayed optimism last week about the future of the industry.
The president and CEO of Stone Energy Corp. in Lafayette said he’s confident the oil and gas industry will bounce back, according to an Associated Press article.
The Advertiser reports that David Welch told the quarterly meeting of the Louisiana Oil & Gas Association last week that as the world population grows, so will the demand for energy. Welch didn’t say specifically when he expects the industry to make a comeback, however, the article said.
He told the group that demand for oil will close the gap created by a current oversupply of oil. He predicted that as the oil supply shrinks, prices will fall, creating a gradual recovery in the industry.