New Orleans

Economy

Since its founding in 1718, New Orleans' status as a port city has been a major factor in its economic development. Its location near the mouth of the Mississippi River enabled the city to grow as an important center for trade. In the nineteenth century, primary commodities included cotton and sugarcane. During the Civil War, the port served as a vital military post. However, the region experienced economic decline as New Orleans, originally part of the Confederacy, was captured by Union troops early in the war. The city recovered its prosperous economic status by the early 1900s.

In the twenty-first century, the New Orleans metro area remains an important commercial and industrial hub. In the world of trade, it is known as one of the busiest and most efficient international ports in the country. Not

only does the Port of New Orleans play a vital role in the region's economy, but in Louisiana's economy as a whole: ten percent of the state's entire workforce is employed in port-related activities.

Despite a decline during the 1980s, the oil and gas industry also remains an important part of the city's economic base. Major U.S. petroleum companies located in New Orleans include Shell, Exxon, Mobil, and British Petroleum (BP).

The economy has diversified significantly since the 1980s, and service industries currently make up the largest employment sector in the region. Tourism and health care are among the city's fastest-growing industries.

Other major boosters of the New Orleans' economy range from higher education to aerospace to finance. Both Tulane and Loyola Universities are major employers. The National Aeronautics and Space Administration (NASA) maintains an assembly facility in the city. Major companies headquartered in the New Orleans' area include Hibernia Corp; Lockheed Martin Michoud Space Systems; Schwegmann Giant Super Markets; and Union Carbide Corp.

As of June 1999, the New Orleans labor force numbered 624,200, and unemployment stood at 4.6 percent.