Has coronavirus hit Coast economy, jobs worse than Katrina? Here are the numbers.
The temporary shutdown of jobs in the hospitality industry hit Harrison County hard, with almost one in four residents out of a job in April thanks to the coronavirus.
By May 23, that number rose to 61,166 people who filed new claims South Mississippi since the pandemic began. Harrison County leads the Coast with 30,533 new claims, followed by Jackson County with 18,259 and Hancock County with 5,023, according to the Department of Employment Security.
Now that casinos, hotels and attractions are back in business, unemployment is beginning to drop. But the jobs numbers start at levels similar to right after Hurricane Katrina 15 years ago.
The March unemployment rate in the Gulfport-Biloxi-Pascagoula area stood at a low 4.9%, according to this week’s report from the Department of Employment Security. In April, it rose to a whopping 22.1% across South Mississippi.
The April unemployment rates were:
- Harrison County — 23.2%
- Jackson County — 21.4%
- Hancock County — 19.3%
- Stone — 14.6%
- George — 14.5%
- Pearl River — 13.1%
The U.S. Bureau of Labor Statistics shows that after Hurricane Katrina, unemployment rose from 5.2% in August 2005 to 24.3% in September 2005 in the Gulfport-Biloxi-Pascagoula metropolitan statistical area, which includes Hancock, Harrison, Jackson, George and Stone counties.
The bureau said South Mississippi had unemployment rates above 10% until May 2006.
Its unknown how quickly the area will recover from the coronavirus shutdown of 2020, but some counties and cities in Mississippi are feeling the pain of coronavirus more than others.
While Harrison County’s unemployment rate of 23.2% in April was extremely high, it wasn’t as bad as Tunica County’s 31.7% unemployment, the highest in the state. Smith County, southeast of Jackson, had the lowest unemployment rate in April at 7.6%.
Biloxi’s April unemployment rate was 27.1% and Gulfport’s was 25.3% compared to 17.8% in Pascagoula.
Casino and sales tax during coronavirus pandemic
Biloxi and Gulfport also are feeling the pain of lost casino revenue. With the casinos closed for more than 2 months, the cities, county, police and schools combined will lose more than $2 million each month in tax revenue.
Biloxi, Gulfport and D’Iberville also are taking a big hit on sales tax revenue during the shutdown, according to the April report from the Mississippi Department of Revenue. The total for the 12 Coast cities was down $635,000 for April, with many hotels, restaurants, attractions and retail closed.
Losses in sales tax diversions for April were:
- Biloxi down $371,000
- Gulfport down $203,000
- D’Iberville down $82,000
But some Coast cities actually saw a bump in sales tax diversions from the state as shoppers stocked up on toilet paper and other supplies as they sheltered in place. Those cities include:
- Pascagoula up by $19,800
- Waveland up by $19,200
- Long Beach up by $14,000
- Pass Christian up by $13,000
Real estate
Tax on real estate sales will be about the same as last year.
Home sales in South Mississippi remained mostly steady during April, with 472 homes sold at an average of $181,744. That compares to 545 homes sold at an average of $182,397 in March, according to the Mississippi Gulf Coast Association of Realtors.
What changed in local real estate is the number of new listings as people delayed showing and selling their homes during the shutdown. New listings fell to 582 in April from 775 in March, indicating home prices could rise with lower inventory.
There are 2,205 homes on the market in South Mississippi, compared to the 12-month average of 2,434.
The average number of days a home is on the market before it is sold is 62.
