Increase anticipated for regional employment

Depending on whom one talks to, 2011 is expected to offer improved employment numbers for the Tri-parish region. The question is will it really be that good, or, as in recent years, just not as bad as other places?

According to the U.S. Department of Labor, while the rest of the nation averaged a 9.8 percent unemployment rate in December 2010, Louisiana had a level of 7.6 percent.

The Louisiana Workforce Commission listed the Houma-Thibodaux corridor as having an unemployment rate of 4.7 percent as the year ended. Terrebonne Parish itself listed an unemployment rate of 5.9 percent, while Lafourche Parish was at 5.7 percent and St. Mary Parish saw an unemployment level of 8 percent.

Location was noted as a significant factor for lower unemployment levels in Terrebonne, Lafourche and St. Mary Parishes with 50 percent of the regional workforce being employed by businesses associated with the oil and gas industry, ship building and maintenance, and seafood harvesting and processing.

The hardships that the region did experience in 2010 were in most cases related to the April 20 Deepwater Horizon explosion as well as a ban on deepwater drilling, a slowed issuing of permits for shallow water exploration, and stoppage of many lease sale options for the foreseeable future.

The spill that severely impacted oil and gas production carried a wave of economic influence into related businesses, and cast a net of uncertainty on the fishing industry.

LSU economist Loren Scott went on record and said that the federal government’s interference with the petroleum industry and natural gas extraction policies will ultimately cost the region jobs.

“I think it’s just real iffy right now,” Scott said regarding employment levels related to the oil and gas production industry and what is to be expected. “Of course, the rig count is down offshore and of course, some of those people are still being kept on payroll, but I don’t think that’s going to last much longer because our employment numbers have been declining all year.”

While some employment observers are encouraged by lower local unemployment figures, Scott predicted that would not that will be the case for all businesses. “I think it is particularly a problem for independent [oil producers] as opposed to majors,” he said. “[Big oil] can afford extra costs associated with regulations, but the independents cannot.”

“[Current employment] is steady, but it’s not growing,” said Fletcher Technical and Community College Chancellor Travis Lavigne. “We are so dependent upon energy related issues that until [federal] regulations are promulgated and made available to the companies, and until [drilling] permits begin to be issued, that is going to determine how quickly the need for skilled workers grows.”

Fletcher, among its various skilled programs, offers the only diesel marine technology training in Louisiana and, according to Lavigne, is facing a limited area of maintenance growth in the regional workforce as it pertains to the oil and gas industry.

On the other hand, Lavigne said, demand has remained high in the health care workforce. “We do see continued demand for practical nurses and registered nurses,” he said, and noted that an aging population has influenced that trend.

Jane Arnette, executive director for the South Central Industrial Association, said that her organization is taking a hard look at the workforce, how it has been impacted during the past eight months and what steps can be taken to improve conditions for the region.

Since September 2007, SCIA has made use of state funds to develop a comprehensive program that addresses workforce issues.

The program, known as Work It! Louisiana, educates local public school students on career paths and available opportunities that enhance the region. Members of the SCIA workforce development committee plan on meeting later this month to address current workforce conditions.

“We will be focusing in and restructuring all the [available] workforce data for better development,” Arnette said.

Kim Cancienne, manager of the Houma Manpower office, offered the most encouraging projection regarding the regional workforce in 2011.

“The outlook is very positive,” she said. “We did better in 2010 than we did in 2009 and expect [employment levels] will continue to grow in 2011. Louisiana employment is the best in the nation. We are positioned well.”

Research material provided by Cancienne, and compiled as the Manpower Employment Outlook Survey, reflected plans made by 18,000 companies.

Going through national averages the report revealed that in Louisiana, 21 percent of employers expect to add workers in the first quarter of 2011.

Of those questioned, 68 percent said they would maintain their current employee levels, 7 percent expect to eliminate jobs during the first quarter, and 4 percent did not know what to do regarding their employees.

The numbers in Louisiana stood in contrast to national figures that showed 14 percent of employers expect to add to their payrolls during the first quarter of the new year, 10 percent would cut jobs, 73 percent anticipate no change and 3 percent did not know what to expect.

The Manpower report showed that an average of 15 percent of employers in southern states expected to add workers during the first quarter of 2011, while other regions included job additions at levels of 14 percent in the Midwest, 14 percent in the northeast, and 14 percent in western states.

For the first quarter of 2011, data from the Manpower reports suggested the best job prospects for Louisiana workers should be in durable and non-durable goods manufacturing, transportation and utilities, wholesale and retail trade, information, financial activities, professional and business services, education and health services, leisure and hospitality and other services.

Employers in construction and government showed the strongest intention to reduce staffing levels.

“A lot of our customers in the oil field related industries are hiring,” Cancienne said, but declined to reveal which companies those might be.

“All of our customers are telling us that after the first of the year there is going to be additional opportunities. It’s positive and exciting to see things finally improve.”

Michelle Turner works at Mr. Ronnie’s Donuts and is among those glad to have a job with the New Year. Employment experts predict the job market should improve for the Tri-parish region in 2011. MIKE NIXON