Editor’s Note: This story is part of the Biz New Orleans Magazine’s focus on workforce issues, August edition.
NEW ORLEANS – Greater New Orleans businesses are hiring, but finding workers with the right skills and experience remains a challenge according to a new Biz 500 survey examining regional workforce trends.
More than nine in 10 respondents said they are maintaining or increasing hiring compared with last year. But business leaders also pointed to gaps in training and specialized skills, along with population loss and rising living costs that could make it harder to build and retain the region’s workforce.
Of the 62 executives who answered the hiring question, 37% said they are hiring more employees than last year and 55% said hiring is about the same. Just 3% said they are hiring fewer, while 5% said they are not hiring.
“Overall, I am optimistic about the region’s economic potential, but success will depend on investing in people, particularly through education, technical training, apprenticeships, and efforts to attract and retain young talent,” said Robert DeViney, executive director of the Jefferson Performing Arts Society.
Labor Quality Remains Mixed
While hiring remains strong, executives were more mixed in their assessments of labor quality. Sixty percent of respondents said labor quality is unchanged, while 22% said it is improving and 18% said it is declining.
“There has definitely been a softening in talent over the last 10 years, but we work heavily on training,” said Thomas Register, general manager of The Sazerac House.
Several respondents pointed specifically to gaps in training and experience. Jennifer Surgala Couvillon, associate dean for professional practice and advanced nursing practice at Louisiana State University Health Sciences Center School of Nursing, cited limited training experiences, while DeViney pointed to a lack of experience or education in the market.
“We need to provide more entry level training on technology and work readiness,” said Jodee Eyster Daroca, president and CEO of Goodwill Industries of Southeastern Louisiana.
Not all respondents reported difficulty finding qualified workers. Jeffrey R. Doussan, operating principal of Keller Williams Realty New Orleans, said the company receives many applicants and that he has not found any particular positions difficult to fill.
Specialized Skills Remain in Demand
Where employers reported hiring difficulties, they frequently pointed to specialized skills and experience rather than a lack of workers generally. Respondents identified difficult-to-fill positions in culinary work, architecture, media buying, nursing education and experienced legal support.
The construction sector illustrates some of those specialized workforce needs. New Orleans-area construction employment was up 6.6% year over year in June, according to federal labor data, making it one of the region’s stronger-growing employment sectors.
Architecture firms are also reporting recruiting challenges nationally. In the American Institute of Architects’ May Architecture Billings Index, 63% of responding firm leaders said recruiting architectural staff is a problem, while firms in the South were the most likely to report being understaffed. In the Biz 500 survey, Ron Blitch, president of Blitch Knevel Architects, identified staff architects among the positions that remain difficult to fill.
For the Jefferson Performing Arts Society, the challenge extends across a range of highly specialized jobs.
“The hardest positions to fill are specialized technical and production roles, including stage managers, lighting and sound technicians, scenic/props personnel, and skilled backstage crew,” DeViney said. “We also sometimes have difficulty recruiting experienced musical theatre directors, choreographers, and instrumental/vocal music professionals who are available for the part-time and seasonal nature of performing arts work.”
Attracting and Retaining Talent
Beyond skills and training, several respondents raised concerns about the region’s ability to attract and retain workers. Population loss, wages and the rising cost of living were among the issues cited.
The concern about population loss comes as Orleans Parish has lost roughly 7% of its population since 2019, while Jefferson Parish has remained relatively stable. At a July Bureau of Governmental Research briefing, regional leaders said reversing that trend will require helping small businesses grow into employers that offer more mid-career opportunities, improving transportation between workers and jobs, and investing in education and infrastructure.
“Insurance and inflation is going to make it harder for restaurant workers to afford to live here,” said Daniel Andrew Stein, owner of Stein’s Market and Deli. “A recession will really hurt us.”
Jeff O’Hara, founder and owner of 350 Investments, cited a lack of workers moving into the region and said crime and unreliable infrastructure can make New Orleans less attractive to potential newcomers. Doussan also pointed to wages, saying more companies need to offer strong pay.
AI Could Reshape the Workforce
Artificial intelligence also emerged as a workforce concern, with respondents divided over how it could change jobs and staffing needs over the next five years.
AI is already widely used among the region’s business leaders. In an earlier Biz 500 survey, 83% of respondents said they were using AI, and more than 90% of those users said it had improved efficiency. Nearly one in five said the technology was already embedded in their long-term operations. Some businesses described AI as a tool for increasing productivity and capacity rather than replacing employees, while others said it allowed them to accomplish more without adding staff.
“AI is going to have a tremendous impact on work as we know it. I am helping lead and coach people through that,” said Erica Salm Rench, chief operating officer of rasa.io.
Respondents pointed to different ways that shift could affect the workforce. Jennie Westerman Diemont, president and chief creative officer of Deep Fried Advertising, cited the potential for employers to rely on AI to reduce jobs, while Gerald Duhon, president and CEO of the New Orleans Culinary & Hospitality Institute, raised concerns about virtual interactions replacing basic human interactions.
Baker Donelson shareholder Kent Andrew Lambert said technology has changed how work is performed without necessarily eliminating jobs.
“I believe recent disruptive trends have plateaued, at least for now. While technology continues to impact how jobs are done, it has not displaced the professionals and support personnel who utilize it,” Lambert said.
Where Employers Are Finding Talent
Despite the challenges, respondents pointed to a range of local institutions as sources of talent. Tulane University and Loyola University were the most frequently named individual institutions. Others identified the LSU New Orleans, Dillard University, LSU Health Sciences Center, the New Orleans Center for Creative Arts (NOCCA) and Jefferson Parish Schools.
Respondents also pointed to Louisiana law schools and the region’s culinary, hospitality and performing arts communities. “Louisiana’s law schools and universities continue to produce great talent,” Lambert said.
DeViney said Jefferson Performing Arts Society draws from both educational institutions and the region’s existing professional workforce.
“Tulane, Loyola, UNO, Dillard, NOCCA, and Jefferson Parish Schools are key sources of emerging talent,” DeViney said. “We also recruit experienced artists and production personnel from the broader New Orleans performing arts community.”
About the Biz New Orleans 500
The Biz New Orleans 500 is an annual publication showcasing the influential leaders driving today’s regional economy and shaping tomorrow’s opportunities across the Biz New Orleans 10-parish business community. The Biz New Orleans 500 offers professional insights, biographical details and personal perspectives that reveal the real people behind the titles.
