The American Press

No change, however good, has ever come without a challenge.

The liquefied natural gas industry has already made its mark in Southwest Louisiana in the form of thousands of construction jobs and hundreds of permanent jobs, one reason the region is now the fastest job gainer in the state. 

Two LNG facilities — Cheniere Energy’s Sabine Pass LNG and Cameron LNG — are under construction, and Cheniere is already operating. Eight other LNG projects are planned for the area, each bringing its own store of construction and permanent jobs. 

More jobs will undoubtedly be a positive thing, raising standards of living for many. But it’s important to keep a few things in mind when considering how job hikes will affect Southwest Louisiana:

1. Construction jobs are temporary, meaning workers will eventually have to leave the area or find work in other sectors. Economist Loren Scott said other industries, like food service and health care, will grow enough to absorb some of these workers. 

Bottom line: The economy will have to adjust to fewer consumers once construction tapers off. Diversifying the market is one way to ensure this adjustment isn’t too painful. 

2. Not all jobs are local. But it’s important to make sure local people and businesses get a shot at these projects when they qualify. A new online database, Louisiana Business Connection, has made it easy for large contractors to connect with local businesses. Additionally, the top-ranking Louisiana Development FastStart and programs like those at Sowela Technical Community College will help to ensure the local workforce is properly trained.

3. Small businesses may see increased labor costs. Since high-paying industry jobs tend to pull workers away from other sectors, small businesses may have to raise their wages to attract employees.

To cover costs, they may have to raise prices, which would increase the cost of living. As Port of Lake Charles Executive Director Bill Rase has noted, a higher cost of living can put a strain on low-income residents.

4. The future, although bright, is never certain. Two LNG projects are underway, but the rest have seen slight delays because of the high price of oil and the current global glut of natural gas. The number of jobs and the subsequent effect on the market will ultimately depend on how many projects become a reality.