Definition
The economic impact on the economic system from a disaster (Natural or Man-Made).
Location and Extent of the Economic Shock Hazard
The scale of economic shocks can range from the individual and household to the nation and the world.
Severity of Economic Shocks
Economic Shocks in New Orleans are generally tied to natural and/or man-made disasters or from broader scale economic shocks on the national and global levels. The severity of a shock is dependent on the scale of the disaster and the vulnerability of the sectors impacted.
Previous Occurrences of Economic Shock
Some recent economic shocks are described below:
Hurricane Katrina in 2005 – Approximately $161 Billion[1]
BP Oil Spill in 2010 – Approximately $65 billion[2]
COVID-19 Pandemic – The COVID-19 Pandemic has had far-reaching economic repercussions for both the New Orleans region and the United States as a whole. According to the Brookings Institute Metro Recovery Index, most recently updated in September 2020, key economic indicators in New Orleans have been substantially impacted by the pandemic since January 2020. It is estimated that the number of jobs in the New Orleans metropolitan area has decreased 11%, the unemployment rate has increased 4.4% from 4.8% in January to 9.2% in September, and the number of job postings has decreased by 14.3%. Additionally, there has been a 28.9% decrease in small businesses since February.[3] Additionally, New Orleans’ top six industries, which account for 80% of local tax revenue, are forecast to see an $81.2 Million reduction in City tax revenue because of the Covid-19 Pandemic. The number one industry in New Orleans, food service and accommodation, has suffered a loss of about 25,000 jobs as of late July 2020.[4]
While the COVID-19 pandemic has affected communities across the U.S., the economic and public health impacts of the COVID-19 Pandemic have disproportionately affected people of color in New Orleans and across the country. Glaring disparities in access to resources perpetuated by historic and systemic housing, economic, and health care policy discrimination have created conditions that contribute to an increased morbidity and mortality rate in minority-majority communities.[5] These discriminatory social conditions have been magnified by the COVID-19 Pandemic. In New Orleans, as of June 2020, Black New Orleanians represented 87.5% of all COVID-19-related deaths that were not in Long-Term Care (LTC) facilities, whereas white New Orleanians made up only 9.1% of non-LTC deaths. The overall population of Orleans Parish is 60% Black and 35% White, highlighting the inequitable racial disparities of COVID-19 impacts.[6]
Hazard Impacts
Impact on Life and Property
Given the scale of an economic shock, the impact on life and property can vary significantly from the individual to the entirety of the global marketplace. It can be complicated to identify the full effect of any shock given a lack of comprehensive data. The economic shock created by the Covid-19 pandemic has impacted the stability of critical community lifelines, including housing, the food supply chain, and employment.
Vulnerability
For this hazard, we are unable to calculate probability due to a lack of data.
[1] National Oceanic and Atmospheric Administration. (2020, October 23). Hurricane Costs. Office for Coastal Management.
[2] Bousso, R. (2018, January 16). BP Deepwater Horizon costs balloon to $65 billion. Reuters.
[3] Berube, A., & Crump, S. (2020, October 30). Metro Recovery Index. Brookings Institute.
[4] New Orleans Business Alliance. (2020, July 28). Tracking The Economic Impact of COVID-19.
[5] Perry, A. M., Harshbarger, D., & Romer, C. (2020, April 16). Mapping racial inequity amid COVID-19 underscores policy discriminations against Black Americans. Brookings Institute.
[6] Weinstein, R., & Plyer, A. (2020, June 25). Detailed data sheds new light on racial disparities in COVID-19 deaths. The Data Center.
Relevant Actions
Hazard:
Flooding, Tornadoes, Tropical Cyclones, Severe Thunderstorms, Extreme Heat, Subsidence, Winter Weather, Coastal Erosion, Infectious Disease Outbreak, Active Threats, Infrastructure Failure, Hazardous Materials, Economic Shock |
Goal:
Goal 4: Maximize the involvement of individuals, businesses, and groups in risk reduction measures through education/outreach on hazard mitigation appropriate to all groups, particularly vulnerable populations. |
Status:
|
Timeframe:
3-5 years |
Priority:
Medium |
2015 Priority:
N/A |
|
Lead Agencies:
CNO (Homeland Security & Emergency Preparedness) |
Support Agencies:
|
Cost:
City Staff Time, Contract Labor |
Funding source:
City capital bond funds, GOMESA, CDBG, CDBG-NDR, Sewerage and Water Board, State capital outlay, FHWA, FEMA-HMGP, US Army Corps of Engineers, FEMA |
Emergency Support Function:
ESF 1, ESF 3 |
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Hazard:
Flooding, Storm Surge, Tornadoes, Tropical Cyclones, Severe Thunderstorms, Extreme Heat, Subsidence, Winter Weather, Coastal Erosion, Infectious Disease Outbreak, Active Threats, Infrastructure Failure, Hazardous Materials, Economic Shock |
Goal:
Goal 4: Maximize the involvement of individuals, businesses, and groups in risk reduction measures through education/outreach on hazard mitigation appropriate to all groups, particularly vulnerable populations. |
Status:
|
Timeframe:
1-5 years |
Priority:
High |
2015 Priority:
N/A |
|
Lead Agencies:
CNO (Office of Resilience & Sustainability) |
Support Agencies:
|
Cost:
City Staff Time |
Funding source:
CNO General Fund, State and Federal Grants, Philanthropic Grants |
Emergency Support Function:
ESF 15 |
Comment on this action item
Hazard:
Flooding, Tornadoes, Tropical Cyclones, Severe Thunderstorms, Extreme Heat, Subsidence, Winter Weather, Coastal Erosion, Infectious Disease Outbreak, Active Threats, Infrastructure Failure, Hazardous Materials, Economic Shock |
Goal:
Goal 4: Maximize the involvement of individuals, businesses, and groups in risk reduction measures through education/outreach on hazard mitigation appropriate to all groups, particularly vulnerable populations. |
Status:
|
Timeframe:
1-5 years |
Priority:
Medium |
2015 Priority:
N/A |
|
Lead Agencies:
CNO (Homeland Security & Emergency Preparedness) |
Support Agencies:
|
Cost:
City Staff Time |
Funding source:
State and Federal Grants |
Emergency Support Function:
ESF 5, ESF 7 |
Comment on this action item
Hazard:
Flooding, Tornadoes, Tropical Cyclones, Severe Thunderstorms, Extreme Heat, Subsidence, Winter Weather, Coastal Erosion, Infectious Disease Outbreak, Active Threats, Infrastructure Failure, Hazardous Materials, Economic Shock |
Goal:
Goal 6: To protect Orleans Parish and the surrounding region from the effects of natural and manmade hazards, ensuring community continuity in the event of such hazards. |
Status:
|
Timeframe:
3-5 years |
Priority:
Medium |
2015 Priority:
N/A |
|
Lead Agencies:
CNO (Office of Resilience & Sustainability, Neighborhood Engagement Office) |
Support Agencies:
|
Cost:
City Staff Time |
Funding source:
CNO General Fund, State and Federal Grants, Philanthropic Grants |
Emergency Support Function:
ESF 7, ESF 14 |
Comment on this action item
Hazard:
Flooding, Tornadoes, Tropical Cyclones, Severe Thunderstorms, Extreme Heat, Subsidence, Winter Weather, Coastal Erosion, Infectious Disease Outbreak, Active Threats, Infrastructure Failure, Hazardous Materials, Economic Shock |
Goal:
Goal 6: To protect Orleans Parish and the surrounding region from the effects of natural and manmade hazards, ensuring community continuity in the event of such hazards. |
Status:
|
Timeframe:
1-5 years |
Priority:
Medium |
2015 Priority:
|
|
Lead Agencies:
HANO |
Support Agencies:
|
Cost:
TBD |
Funding source:
TBD |
Emergency Support Function:
|
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Hazard:
All |
Goal:
Goal 2: Reduce risk and vulnerability to the built environment including current and future structures; critical facilities; historic structures; and infrastructure, including communications infrastructure. |
Status:
|
Timeframe:
TBD |
Priority:
Medium |
2015 Priority:
N/A |
|
Lead Agencies:
SWBNO Emergency Mgmt |
Support Agencies:
|
Cost:
21000000 |
Funding source:
PDM/SWBNO |
Emergency Support Function:
ESF 6 |
Comment on this action item
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