BATON ROUGE, La. — Louisiana reached a record 2.01 million nonfarm jobs in May, according to a second-quarter economic update released by Leaders for a Better Louisiana, reflecting continued job growth driven largely by industrial construction.
The report shows the state added 16,700 jobs over the year, with employment remaining above 2 million for four consecutive months. Baton Rouge, Monroe and Lake Charles led job gains among metro areas, while construction accounted for the largest share of growth, adding 9,300 jobs.
Louisiana’s job growth rate of 0.8 percent ranked fourth among the 16 Southern states, trailing North Carolina, West Virginia and South Carolina, according to data cited from the Bureau of Labor Statistics. The state’s real gross domestic product grew 2.7 percent over the same period, also ranking fourth in the region and exceeding the Southern average of 2.2 percent.
Despite the gains, growth across the state remained uneven. Six of Louisiana’s 10 metro areas added jobs, with Baton Rouge posting the largest increase of 7,900 jobs. Monroe recorded the fastest growth rate at 1.3 percent, supported by construction of a Meta data center in Richland Parish, while Lake Charles grew 1.2 percent as liquefied natural gas projects continued. Houma and Shreveport recorded the largest declines.
Eight of 14 industry sectors expanded over the year. Following construction, health care added 4,000 jobs and manufacturing added 3,600. Declines were seen in arts and recreation, federal government employment, and transportation and warehousing.
The report also highlighted Louisiana’s improved standing in the Tax Foundation’s 2026 State Tax Competitiveness Index, where the state rose six positions to 31st nationally following tax reforms enacted in 2024. Those changes included a flat 3 percent individual income tax rate, a 5.5 percent corporate rate and the repeal of the corporate franchise tax. Despite the gains, Louisiana ranked 12th among Southern states.
The update noted underlying challenges, including a reliance on large capital projects rather than broad-based business formation. While new business applications have increased 48 percent since 2019, that growth ranks near the bottom of Southern states.
The unemployment rate stood at 4.5 percent in May, above the regional average of 4.1 percent and among the highest in the South. Homeowners’ insurance costs also remain elevated, with an average annual premium of $5,986, roughly 2.4 times the national average.
Weekly unemployment claims declined about 32 percent over the year to 9,400. The report said the drop reflects both a stronger labor market and policy changes, including a reduction in maximum unemployment benefit weeks from 26 to 12 under legislation that took effect in 2025.
Leaders for a Better Louisiana said the state’s current expansion is being driven by construction activity, raising questions about long-term sustainability once major projects are completed.