La.’s workforce is 10th most impacted by COVID-19 shut downs
27th April 2020 · 0 Comments
By Fritz Esker
Contributing Writer
A new report lists Louisiana’s workforce as the 10th most impacted during the coronavirus pandemic.
Using data from the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the U.S. Census Bureau, the e-commerce website Volusion determined that 23.2 percent of Louisiana’s workers are in the retail, leisure and hospitality industries (https://www.volusion.com/blog/cities-with-the-most-impacted-workforces-during-coronavirus/).
Volusion ranked the New Orleans-Metairie area third among large metro areas whose hospitality industries have been impacted by COVID-19, behind only Las Vegas and Orlando. Its numbers estimated the city had 91,800 leisure and hospitality workers and 60,400 retail workers. 26.1 percent of the city’s workers are in retail, leisure and hospitality. 17.5 percent of local workers are below the poverty level.
Travel and Tourism
The U.S. Travel Association also released data (https://www.ustravel.org/sites/default/files/media_root/document/Coronavirus2020_Impacts_April15.pdf) that painted a dire picture for America’s travel industry and cities that depend upon it. By the end of April, declining travel will result in eight million jobs lost nationwide (out of about 24 million total). Their estimates indicated COVID-19’s impact on travel is nine times worse than 9/11. Travel spending losses are expected to top half a trillion dollars by the end of 2020.
That’s painful news for Louisiana. Louisiana Lt. Governor Billy Nungesser said in 2018 (the last available numbers), the state welcomed 51.3 million visitors who spent $18.8 billion, creating $1.9 billion in tax revenue ($1,083 in taxes per Louisiana family). 237,200 jobs in the state are supported by tourism. When the shutdown began in March, over 50 hotels were in construction throughout Louisiana.
“It’s almost heartbreaking to see it stop all of a sudden,” said Nungesser.
Mark Romig, senior vice president and chief marketing officer at New Orleans & Company, said COVID-19 shutdowns have significantly impacted the tourism and hospitality industry in New Orleans.
“So many individuals and families have been drastically affected over the past couple of months,” said Romig.
Romig maintained a note of optimism as he said New Orleans & Company is currently working to rebook meetings and conventions for later this year, 2021, and beyond.
“Our industry and the people who make it up are resilient and those who are able are already working on reopening plans with health and safety guidelines in mind,” said Romig.
Nungesser was also optimistic for the state’s prospects. He said they will aggressively seek to host a variety of events in 2021. In the meantime, he said his office will promote staycations to locals. He acknowledged many people might be scared to ride in the cramped confines of an airplane even after the shutdown is lifted, so his office will encourage locals to drive to parts of Louisiana they have never seen before. In a city like New Orleans, residents could also treat themselves to a weekend at one of its many hotels. He added it’s important for people to share information about the state’s hidden gems on social media.
“People telling a story always sells better than ads,” Nungesser said.
Nungesser said Louisiana’s history of bouncing back after disasters like the levee failures following Hurricane Katrina and the Deepwater Horizon oil spill proves the state has what it takes to survive tough times.
“I have no doubt we will be back better and stronger than ever,” said Nungesser.
Retail Losses
Retail, previously one of the economy’s strongest sectors, has also been hit hard by the pandemic. The National Retail Federation (NRF) projected that 4.9 million workers will be displaced by COVID-19 in the short term, with up to seven million jobs being lost by the end of the year.
Mary McGinty, vice president of communications and public affairs at the NRF, is encouraged by the federal response to the crisis, but feels more needs to be done.
“Small business makes up 98 percent of retailers, and we are encouraged by the Senate’s passage of additional funding for the Paycheck Protection Program for small businesses in need, and the additional $60 billion designated for the Economic Injury Disaster Loan Program to support small businesses in underserved communities,” said McGinty.
The NRF also wants increased funding to loan and financial assistance programs to help retailers of all sizes retain employees and allow businesses with closed locations to pay rent and utility bills.
Workers Left Unemployed
Caught in the middle of this are the workers left unemployed or underemployed. Samantha Richardson was a bartender at the Mid-City Yacht Club on South St. Patrick St. until she was laid off on March 15.
“My bosses…made sure that all of us employees were going to be okay. They made very clear we will be coming back to work and immediately set up a Go Fund Me for us employees,” said Richardson.
In the meantime, Richardson has sold some clothes online and sporadically delivered groceries. She also receives a weekly unemployment payment.
“The initial process of applying was an absolute headache,” said Richardson. “I spent at least two days getting the website to work followed by two more trying to get my correct information entered. However, once that was done, I have successfully been able to reapply every week as necessary. But from what I understand, my experience with the LA Works website was a dream compared to others.”
While Richardson said the shutdown hurts the local service economy, she believes it will recover in time and New Orleanians will support their favorite local businesses once they reopen.
Richardson said she had concerns about safety in a business that requires face-to-face contact with people, but she is unsure what protective measures can be taken (gloves, credit cards only, limited occupancy, face masks) without harming service. But she is still eager to return to her job.
“I’m ready to go back to work and when we are allowed to do so, I will,” said Richardson.
This article originally published in the April 27, 2020 print edition of The Louisiana Weekly newspaper.
