By Penny Tilgman
May 5, 2008

The U.S. Conference of Mayors Workforce Development Council hosted its Annual Board Meeting in New Orleans April 23-24. Local public officials and a representative from the Louisiana Department of Labor spoke to the council on rebuilding the New Orleans Workforce System in the aftermath of Hurricane Katrina. New Orleans Office of Workforce Development Director Bryan Moore led the guest panel discussion, followed by his colleagues Mike Garvey, Jefferson Parish Director and 1st Planning District Consortium Director Melissa Kirsch. Office of Workforce Development Department of Labor Special Assistant Gerard Melancon concluded the presentations by offering a state perspective on New Orleans workforce development operations.

Hurricane Katrina had a devastating effect on New Orleans’ labor market. During the first ten months after the hurricane, the city suffered an over-the-year average loss of 95,000 jobs including 3,000 municipal positions. The main focus of Workforce Investment Boards and Career Centers throughout the city was to help individuals obtain Unemployment Insurance (UI). However, many employers sought assistance from WIBS to replenish an evaporated labor base.

“The major challenge to local government after Hurricane Katrina was that the city had more jobs than people,” said Moore, after explaining that New Orleans had no tax base due to mass emigration after the storm. The human resource deficit in the city inflated wages in the low-wage service sector. For example, fast food chain salaries averaged $13.00 an hour and afforded signing bonuses of $3,000 after the disaster.

Prior to the hurricane, the city’s population was estimated at 310,000—after the storm the population decreased to 270,000, leaving a large gap between available jobs and employees.

Many businesses asked for assistance in finding employees. Employers, particularly from the private sector, were desperate for workers and started developing creative ways to retain and recruit employees. “Northrop Grumman provided temporary housing for workers after the storm to salvage their labor base,” said Kirsch. “Businesses needed people, while people were looking for unemployment insurance.”

In response to the labor shortage crisis, local WIBS hosted public forums for both employees and employers. The New Orleans Workforce Investment Boards worked with FEMA and developed regional partnerships with chambers of commerce and economic development agencies in order to address the multi-level labor force melee.

“As a result of Katrina, our organizations started to communicate and work together to rebuild the workforce system. We now have permanent partnerships both regionally and with economic development organizations,” said Moore.

“Hurricane Katrina gave us the opportunity to fix the workforce development system,” stated Melacon. “As a result of the systems reform we now have representatives from both the private and education sector serving on our local WIBS. Through regional collaborations with business, community colleges and economic development agencies, we have a vertical system that is more efficient and effective.”

The regional partnerships have recently leveraged a $15 million youth grant to assist New Orleans parishes expose at- risk youth, ages 16-24, to career training and community development opportunities.

Following presentations by city officials, the WDC Council went on a bus tour to view the damages and recovery projects unfolding in New Orleans firsthand.