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New Orleans: Bucking National Trends

Louisiana Economic Development
December 7, 2009

Bucking national trends during a difficult national recession, the New Orleans area has outperformed the nation on key economic indicators, gained national recognition for its strong performance, and secured significant business development wins. Southeast region major project wins since January 2008 represent over 2,600 new direct and indirect jobs, over 4,500 jobs protected, and over $560 million in capital investment.

The New Orleans economy has experienced positive growth despite the national recession.

  • The population of the city of New Orleans grew by 8.2 percent in 2008, the fastest percentage growth of any large city in the U.S. New Orleans also had the 7th largest absolute growth during the same time period, with a gain of 23,700 people. (U.S. Census, July 1, 2009)

  • The New Orleans MSA had an unemployment rate of 7.3 percent in September 2009, significantly below the U.S. MSA average of 9.5 percent. The New Orleans MSA had the 95th lowest unemployment rate among the nation’s 372 MSAs. (BLS LAUS, October 2009)

  • Growth in certain industry sectors in the New Orleans MSA outpaced national growth. Education and health services in the New Orleans MSA grew 4 percent (2,700 jobs) from September 2008 to September 2009, in comparison to 1.9 percent nationally. In addition, leisure and hospitality in the New Orleans MSA grew 1.7 percent (1,100 jobs) while the sector contracted by 1.8 percent across the U.S.

  • Standard and Poor’s as well as Fitch increased their bond ratings of New Orleans to investment grade.

New Orleans’ strong economic performance is gaining recognition and momentum.

  • BusinessWeek named New Orleans one of the 10 safest cities in which to ride out the recession. (October 2008)

  • MSN Travel named New Orleans one of the 15 Coolest North American Cities. (January 2009)

  • Forbes ranked the New Orleans area 8th out of the Top 10 Cities Where Americans Are Relocating. (March 30, 2009)

  • Next Generation Consulting named New Orleans the 10th best “Midsize Magnet” for young professionals to live and work. (June 11, 2009)

  • Southern Business and Development magazine named New Orleans the “Major Market of the Year”. (July 2009)

  • Entrepreneur magazine ran a feature article on how innovation is driving the “new” New Orleans. (August 2009)

  • A Society of American Travel Writers poll named New Orleans the top North American city for live music. (August 2009)

  • Tulane’s business school was named 4th in the nation for graduate programs in entrepreneurship by Entrepreneurship magazine and The Princeton Review. (September 2009)

  • A Bizjournals/Portfolio.com report placed New Orleans 1st for long-term per-capita income growth, covering the 25-year period from 1983 to 2008. (September 2009) A related analysis placed New Orleans 50th on the list of the nation’s best labor markets, based on job growth from June 2008 to June 2009. (October 2009)

  • New Orleans-based Entergy Corp was the only utility named in BusinessWeek’s list of the 50 Best Places to Launch Your Career. (October 2009)

  • Faubourg Marigny in New Orleans was named to the American Planning Association’s 2009 list of the top 10 Great American Neighborhoods. (October 2009)

  • The New Orleans MSA leapfrogged to 84th in 2009, up from 151st in 2008, on Milken Institute/Greenstreet Real Estate Partners Best-Performing Cities Index. The index ranks U.S. MSAs on factors such as job, wage, and high-tech GDP growth. (November 2009)

  • Eduniversal Palmes ranked Tulane’s Freeman School of Business 13th on the list of top internationally known business schools. (November 2009)

New Orleans has secured recent, significant business development wins.

  • New Orleans hosted the NBA All-Star 2008 and will host the NCAA Final Four in 2012 and the Super Bowl in 2013. In addition, a new partnership with the State will retain the Saints in New Orleans through 2025 and establish a Sports Development District downtown.

  • State incentives have helped attract and grow the entertainment industry in New Orleans. Film production and other entertainment sectors are now firmly established in the region. For example, two television series, Disney’s “Imagination Movers” and HBO’s “Treme,” are based out of New Orleans. Dave Matthews Band’s latest #1 hit album was recorded at Piety Street Studios in the Bywater.

  • $55.5MM from the State’s Mega Project Development Fund will go to the new Research and Development Administration building and related equipment at NASA’s Michoud Assembly Facility. The facility claims more than 4,000 workers and contributed more than $180MM in taxes last year alone. It will play a critical role in NASA’s next mission to the moon via the new Constellation program.

  • Horizon Entertainment = 76 Total New Jobs. Horizon Entertainment’s relocation of an Atlanta-based film and TV studio results in 41 new direct jobs and 35 new indirect jobs in Orleans Parish.

  • Ochsner and the University of Queensland = 21 Total New Jobs. The new University of Queensland School of Medicine Clinical School at Ochsner results in 13 new direct jobs and 8 new indirect jobs in Jefferson Parish. Also, an estimated 250 jobs were protected. This project results in the first ever joint affiliated medical school in the United States. This innovative partnership will attract more medical students to Louisiana, strengthen the region’s medical community and create knowledge-based jobs in the health services sector.

  • Federal City = 749 Total New Jobs. Louisiana committed $150MM for redevelopment of a military headquarters campus at Federal City on the West Bank, which will retain 1,663 jobs and attract thousands of new jobs. The retention and expansion of operations at the Federal City military headquarters facility results in 300 new direct jobs and 449 new indirect jobs. Federal City is expected to become a national model for post-BRAC redevelopment of federal installations.

  • SPAWAR Systems Center = 391 Total New Jobs. The expansion of operations at the SPAWAR Systems Center results in 176 new direct jobs and 215 new indirect jobs. Also, 443 jobs were protected in Orleans Parish.

  • Baker Maid Products = 155 Total New Jobs. The Baker Maid Products’ bakery relocation results in 75 new direct jobs and 80 new indirect jobs in Orleans Parish.

  • Seven Arts Pictures = 177 Total New Jobs. The new Seven Arts Pictures’ post production film facility results in 95 new direct jobs and 82 new indirect jobs in Orleans Parish.

  • New Orleans Cold Storage = 380 Retained Jobs. The relocation of NOCS to a better long-term location will protect approximately 380 existing jobs in Orleans Parish.

  • Monsanto = 355 Total New Jobs. The expansion of Monsanto in St. Charles Parish results in 30 new direct jobs and 325 new indirect jobs. Also, 670 jobs were protected.

  • Southern Recycling = 230 Total New Jobs.The relocation and expansion of Southern Recycling results in 100 new direct jobs and 130 new indirect jobs. Also, 150 jobs were protected.

  • Northrop Grumman = 71 Total New Jobs. Northrop Grumman’s new Light Detection and Ranging (LiDAR) Center for Excellence in Slidell results in 35 retained jobs, 40 new direct jobs and approximately 31 indirect jobs.

  • Motor Tech Americas = 31 Total New Jobs.The relocation and expansion of Motor Tech Americas results in 15 new direct jobs and 16 new indirect jobs in Jefferson Parish.