Bird's Eye View of the Baton Rouge Economy
More than two years after the beginning of the COVID pandemic, several key economic indicators show that Baton Rouge’s pre-pandemic and current economy look strikingly similar, with two key exceptions
Unemployment is down significantly, and job postings are hovering near record highs: these are the most notable differences between May 2020 and May 2022 when looking at key measures that reflect the health of Baton Rouge’s economy. The most important takeaway, however, may be that several key indicators were largely unchanged over the past two years, namely the size of Baton Rouge’s labor force, the number of employed residents, and the number of nonfarm jobs.
*An indexed number represents the percentage of what the economic indicator’s value was in March 2020. The baseline value, 100, represents the value of these metrics during the base period which, in this case, is March 2020. Values greater than 100 indicate the value of that metric has increased compared the base period while values less than 100 mean the value of that metric has decreased relative to the base period. The Job Posting Index in May 2022 is 111, which means there were 11% more job postings that month compared to March 2020. The Unemployment Index in May 2022, listed at 49, means there were 51% fewer unemployed workers that month compared to March 2020.
Baton Rouge’s number of unemployed workers fell dramatically from May 2020 to May 2022. The metro currently has fewer than 14,000 unemployed workers which is less than half the number of unemployed workers in March 2020. Demand for labor, quantified through job posting data, was already high at the beginning of the pandemic and remains high today with job postings currently up 11% compared to March 2020.
The size of Baton Rouge’s labor force, on the other hand, has not changed all that much. Just a few hundred workers shy of March 2020 levels, Baton Rouge’s current labor force is about the same size it was at the beginning of the pandemic.
Major Economic Indicators Indexed to March 2020
While nonfarm jobs remain about two percent below pre-pandemic levels, that hasn’t hindered workers across the region from finding employment. Employment in Baton Rouge is up more than three percent since March 2020 despite fewer nonfarm jobs, and this may be due to factors like increased self-employment, additional employment in industries not included in nonfarm jobs (like nonprofits), and fewer people taking on second jobs.
Taken together, this data shows that, despite other factors that are driving economic anxiety (see: inflation), key economic measures point to a healthy economy with plenty of opportunity for our region’s workers. Despite ticking down over the last few months, monthly job postings still number more than 30,000 across Baton Rouge.
Job postings data taken in tandem with the number of unemployed workers across Baton Rouge highlight a key reason why BRAC is working to improve the Capital Region’s ability to retain and attract talent. With 2.4 job postings for each unemployed worker, we simply don’t have enough labor to meet the current needs of our employers. BRAC hiring initiatives, like Handshake and BR Works, along with talent retention initiatives, like partnering with Forum 225 and hosting the region’s inaugural Young Professional (YP) Summit, are thoughtful steps in the right direction towards easing the region’s tight labor market.