Mississippi’s unemployment rate increased more than 2 percent from August to September due to the Gulf Coast displacement caused by Hurricane Katrina.
Officials estimate that almost 50,000 people cannot return to work because of the devastation. Nearly one-third of all unemployed Mississippians had worked in the state’s now-defunct coastal casino industry.
Harrison and Hancock counties suffered the most job loss with about 34,000 people out-of-work, according to data from the Mississippi Department of Employment Security. Casino companies estimate at least a six to 12 -month-long reconstruction phase before they’re back up and running again.
Gov. Haley Barbour’s spokesperson Pete Smith said that the rebuilding effort will secure many of the jobs lost during Katrina.
“You’re looking at a mass construction renewal of almost all of the coastal counties,” Smith said. “MDES is matching potential jobs to potential employees to help them get back on track.”
Alice Perry, MDES assistant deputy director, said that multiple routes are being explored, including placing business incubators on the Coast.
“In all 24 of our WIN job centers, we’ve shifted from unemployment benefit claims to finding people jobs,” Perry said. “Our number one goal is to put people back to work.”
MDES has given jobs to over 4,000 residents since Oct. 1.
Perry said she is encouraged by the reopening of the Oreck manufacturing plant in Long Beach, as well as efforts by coastal companies Northrop Grummond and Chevron to get up and running as soon as possible.
Representative Steve Holland, D-Plantersville, saidthat the recent onshore casino bill was passed to aid in the gaming industry’s revitalization.
“The new unemployment numbers show the magnitude of the storm and its effect on the entire state,” Holland said. “It also showed our biggest industry on the Coast is gaming.”
Last week, under pressure from both Democrats and Republicans, President George W. Bush reinstated the Davis-Bacon Act, having suspended it almost two months earlier. The act guarantees that workers on federal construction projects would be paid at least the prevailing local wage.
Previously, Bush drew criticism for the act’s suspension because many critics believed wage reductions during times of poverty and devastation would force hundreds of survivors into bankruptcy.
Sen. Terry Brown, R-Columbus, said he thinks reinstating the act won’t hurt the rebuilding effort.
“It probably won’t hurt to reinstate it now,” Brown said. “This is a massive blow and will be a massive infusion for workers down there,” he said.
Brown said that the overwhelming suggestions for Gulf Coast facilities have caused the governor to title the rebuilding effort “the Gulf Coast Renaissance.”
“I think you’re going to see an economic boost. The only problem is, we’re trying to get everything cleaned up right now,” Brown said, “but we’re going to recover.”
Holland also remains optimistic, not only about the future of the Coast, but also the promise he said he’s seen from other members of the Mississippi legislature.
“You can safely say that the legislative and executive leadership is tuned in and trying to alleviate the suffering of this state,” Holland said.
For more information on the MDES program, contact MDES at www.mdes.ms.gov/.