NEW ORLEANS (AP) -- In the midst of a severe nationwide downturn, the Louisiana economy is holding up better than most. It's a role reversal from a few years ago, when Louisiana was one of the country's weaker states financially following the destruction caused by Hurricane Katrina. The state has the 10th lowest unemployment rate and was the only state to add nonfarm jobs in February, the most recent month for which data are available. Sales tax collections in New Orleans have risen close to levels seen before Katrina. And foreclosure rates have remained low by national standards, in part because the state never experienced a housing bubble. What's unclear is how long the state can keep the downturn's worst demons at bay. March state-by-state employment data, which the Labor Department releases Friday, will offer fresh insights. The major reconstruction effort that continues more than 3½ years after Katrina partly explains why Louisiana state has been fairly insulated from the worst of the recession. (22 images)
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Bride Samantha Hebert celebrates with friends in the French Quarter after getting married May 9, in New Orleans, La. The city has so far dodged many of the effects of the recession with an unemployment rate of just 5.3% compared with 8.9% nationwide. Some fr$19 billion in federal rebuilding money has yet to be spent along with $3.8 billion in federal stimulus funds in the pipeline. Housing prices dropped just 2.1% in the fourth quarter of 2008, while nationwide prices fell 12.9%. The construction industry is strong in the city, however, New Orleans still has more than 68,000 vacant homes, most of which were damaged by Hurricane Katrina in August, 2005. Getty Images / Mario Tama
A street performer stands in the French Quarter May 9, in New Orleans, La. Getty Images / Mario Tama
Leanna King, left, stands in the French Quarter May 9, in New Orleans, La. Getty Images / Mario Tama
Mark Lawes, right, looks down Bourbon Street in the French Quarter May 9, in New Orleans, La. Getty Images / Mario Tama
Members of the Original Big 7 Social and Pleasure Club hold a traditional 'Second Line' parade in the Seventh Ward May 10, in New Orleans, La. The tradition sprang from when African Americans formed brass marching bands and fraternal groups to perform elaborate 'jazz funerals' for their associates. Getty Images / Mario Tama
Members of the Original Big 7 Social and Pleasure Club hold a traditional 'Second Line' parade in the Seventh Ward May 10, in New Orleans, La. Getty Images / Mario Tama
Kala Harris, right, and Anisha Harris look on during the Original Big 7 Social and Pleasure Club traditional 'Second Line' parade in the Seventh Ward May 10, in New Orleans, La. Getty Images / Mario Tama
Edward Buckner laughs after the Original Big 7 Social and Pleasure Club traditional 'Second Line' parade in the Seventh Ward May 10, in New Orleans, La. Getty Images / Mario Tama
A boy sleeps during the Original Big 7 Social and Pleasure Club traditional 'Second Line' parade in the Seventh Ward May 10, in New Orleans, La. The tradition sprang from when African Americans formed brass marching bands and fraternal groups to perform elaborate 'jazz funerals' for their associates. The city has so far dodged many of the effects of the recession with an unemployment rate of just 5.3% compared with 8.9% nationwide. $19 billion in federal rebuilding money has yet to be spent along with $3.8 billion in federal stimulus funds in the pipeline. Housing prices dropped just 2.1% in the fourth quarter of 2008, while nationwide prices fell 12.9%. The construction industry is strong in the city, however, New Orleans still has more than 68,000 vacant homes, most of which were damaged by Hurricane Katrina in August, 2005. Getty Images / Mario Tama
People look on during the Original Big 7 Social and Pleasure Club traditional 'Second Line' parade in the Seventh Ward May 10, in New Orleans, La. Getty Images / Mario Tama
Participants gather during Bike Week New Orleans outside the the Ernest N. Morial Convention Center May 8, in New Orleans, La. Getty Images / Mario Tama
Bartenders are seen during Bike Week New Orleans outside the Ernest N. Morial Convention Center May 8, in New Orleans, La. Getty Images / Mario Tama
Audra Newton and Moon sit outside the Ernest N. Morial Convention Center during Bike Week New Orleans May 8, in New Orleans, La. New Orleans has convention attendees booked for 815,000 nights of hotel stays in 2009, an increase from 2008. Getty Images / Mario Tama
People wait in line for free food distributed by a church group May 8, in New Orleans, La. Getty Images / Mario
Tama
Mark Valudos and fiancee Julissa Tellez walk near a vintage Chevrolet after posing for engagement photos Orleans May 8, in New Orleans, La. Getty Images / Mario Tama
Family members look on during commencement for graduates of Southern University at New Orleans May 9, in New Orleans, La. Getty Images / Mario Tama
A man prays during commencement for graduates of Southern University at New Orleans May 9, in New Orleans, La. Getty Images / Mario Tama
Band members pray during commencement for graduates of Southern University at New Orleans May 9, in New Orleans, La. Getty Images / Mario Tama
Construction continues on a new home built by the Make it Right Foundation in the Lower Ninth Ward May 8, in New Orleans, La. Getty Images / Mario Tama
Robert Green stands on his family's FEMA trailer porch in front of his new home being built by the Make it Right Foundation in the Lower Ninth Ward May 8, in New Orleans, La. Green's mother and granddaughter were killed at their home in the same spot during Hurricane Katrina's flooding. Getty Images / Mario Tama
Construction continues on a new home in the Lower Ninth Ward May 8, in New Orleans, La. Getty Images / Mario Tama
Construction continues on a new home built by the Make it Right Foundation in the Lower Ninth Ward May 8, in New Orleans, La. Getty Images / Mario Tama
