Parish jobless rate tops state, U.S.

St. Mary Parish’s unemployment rate continues to be higher than the national and state rates, according to state and federal figures.
The parish’s unemployment rate for July, distributed in a Louisiana Workforce news release this month and not seasonally adjusted, was at 7.5 percent. It’s up 0.5 percentage point from July 2014.
One important factor is the dramatic drop in oil prices over the last year.
“These are very difficult times for our industry,” said Don Briggs, president of Louisiana Oil and Gas Association. “We’re record lows at rig taps and permits to drill in Louisiana.
“And unfortunately, this trend will probably continue for some time to come.”
Bollinger Marine and Fabrication in Amelia released to the Louisiana Workforce Commission that 275 employees would be affected by layoffs April to July 2015. Layoff notices were sent out in March.
“Obviously, there are a lot of boats tied up now,” said Frank Fink, economic director of St. Mary Parish. “Manufacturing, machine shops, and shipyards, particularly ship repair, have been affected by layoffs.”
McDermott’s layoffs affected six employees in shipbuilding around April and May.
“I think the main effect that we’re seeing is a sharp drop-off in work in the shallow water Gulf, which is generally up to 1,000 feet,” said Eric Smith of Tulane Energy Institute. “The fab yards, vessel building shipyards, and yards providing services for shallow water and drilling activity are going away and are probably not coming back too quickly.”
If the downward trend continues, it will “affect the parish in what we call royalty funds,” said Henry “Bo” LaGrange, chief administrative officer of St. Mary Parish.
A royalty fund is the percentage of all royalties the state receives from oil and gas production.
Royalties are predicated on the price of oil and gas, LaGrange said.
Deep-water services and activities are not taking as much of a hit but will possibly encounter the same effects as the businesses working in shallow water, Smith said.
The Bureau of Labor Statistics released early September unemployment rates, not seasonally adjusted, in Louisiana’s metro areas in July that were decreased.
The unemployment rate decreases in Louisiana’s metro areas were not substantial enough to lower the state’s overall unemployment rate of 6.2 percent below the nation’s rate of 5.1 percent.
“Nonfarm job losses in Houma and Lafayette are largely attributed to the decline in mining and logging jobs due to the low price of oil,” said in a Louisiana Workforce news release.
“Out of 1,100 jobs lost over the year in Houma, 700 were in mining and logging. In Lafayette, mining and logging lost 2,200 jobs.”
Nationally, the mining, quarrying, and oil and gas extraction unemployment rate for August was eight percent.
“Employment in mining fell in August (-9000), with losses concentrated in support activities (-7000), a Bureau of Labor Statistics news release said. “Since reaching a peak in December 2014, mining employment has declined by 90,000.”
“All of our future drilling activity is based on the drilling permits that come,” Briggs said. “Last week, there was one permit south of Interstate 10, which is just unbelievable.”
Compared to last year, the Gulf of Mexico’s oil rigs are down in operations by 50 percent, Brigg said.

This story was written by Shea Drake of The Daily Review staff. Reach her at sdrake@daily-review.com