In Hurricane Katrina's aftermath, several hundred thousand former residents of New Orleans and the Gulf Coast lost their jobs. No doubt, many of these people have already or will soon find new jobs on their own, either in New Orleans or elsewhere. But others will need help managing their transitions back to the labor market. If the rebuilding of New Orleans is undergirded by sound labor market policies, many could upgrade their skills, obtain better jobs, and raise their incomes. The article review some of the short- and longer-term challenges and uncertainties involved in tackling labor market issues in rebuilding New Orleans. These are presented along with some policy proposals for addressing them.