BATON ROUGE, La. — Louisiana recorded strong economic gains at the end of 2025, including job growth, population increases and a decline in violent crime, according to Better Louisiana’s First Quarter 2026 Economic Update.
The report found the state added 22,900 jobs in 2025, a 1.2% increase that ranked third among Southern states for job growth, ahead of Texas and Florida on a percentage basis. The number of employed residents remained above 2 million for eight consecutive months, the longest stretch on record.
“It’s a more positive set of indicators than we sometimes see for Louisiana, and across a wide variety of categories,” said Adam Knapp, CEO of Better Louisiana. “The strength of the state’s economic performance also underscores the reason for our number one policy priority for the legislature: workforce development.”
Workforce alignment also contributed to the state’s performance. Louisiana ranked ninth nationally in the Manufacturing Pipeline Index from Lightcast and Area Development, outperforming several larger industrial states, including Michigan, Ohio, Texas, Florida and California.
Population trends showed continued growth, with Louisiana ranking second in the South for domestic in-migration. The state added 72,028 residents in 2024, a 3.7% increase. The report cited relatively affordable housing as a key factor, with a housing affordability ratio of 3.7 years, about 16% better than the national average.
Public safety indicators also improved. Louisiana’s homicide rate declined 59% from 2021 to 2025, falling from 19.9 to 8.1 per 100,000 residents, one of the largest reductions among peer states.
Labor market conditions remained stable, with unemployment at 4.2% in December 2025, below both pre-pandemic and year-earlier levels. Unemployment claims dropped 41% year over year as of March 2026. Most employment sectors recorded gains, led by health care and social services, which added more than 10,400 jobs.
Infrastructure investment also increased over the past decade. Louisiana moved from 12th to seventh among Southern states in highway maintenance spending since 2014, reflecting a sustained focus on transportation improvements.
The full report is available at https://betterla.org/research/first-quarter-2026-economic-report/.