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August 2006

The labor market impact of Hurricane Katrina: an overview

This overview provides a look at Hurricane Katrina's impact on the labor markets of Louisiana and Mississippi and, to some extent, Alabama and Florida. An estimated 17 percent of Louisiana's employment and 5 percent of Mississippi's employment were within the FEMA-designated damage zones. The two States experienced a sharp rise in mass layoff events and unemployment rates after Hurricane Katrina. In June 2006, Mississippi's employment level had returned to its pre-Katrina level, while Louisiana's level had not. Evacuees again living in their pre-Katrina homes in June 2006 had a lower unemployment rate than those who were not.

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