PELICAN INSTITUTE: Summer 2026 Economic Report
Why this report matters
Louisiana’s comeback is real. Finishing it is the harder part.
The numbers in our Summer 2026 Louisiana Economic Report all point the same direction — and they point there for a reason.
Louisiana’s economy grew faster than the nation and faster than every neighboring state last quarter. Personal income growth led the region. Employers added roughly 16,700 jobs over the year. And for the second year running, more people call Louisiana home.
None of that happened by accident. It follows a run of deliberate policy choices: education freedom through LA GATOR, tax reform that flattened the income tax brackets and ended the corporate franchise tax, One Door to Work, changes to occupational licensing, the REINS Act, and legal reforms aimed at the nation’s highest auto insurance rates.
But the same report shows the work that remains. Louisiana still ranks 44th in net interstate migration, having lost more than 110,000 residents and $3.6 billion in income between 2018 and 2023. The state remains about 39,700 residents below its 2020 base. Unemployment sits just above the national rate.
Writing in The Advocate, Pelican Institute CEO Daniel Erspamer argued that too many reforms stopped short of their promise: LA GATOR funding stalled despite tens of thousands of families qualifying, no permanent path to phasing out the income tax, no limit on government growth, and a legal climate that still deters investment.
Louisiana has momentum for the first time in decades.
Daniel J. Erspamer, CEO, Pelican Institute for Public Policy
Momentum is not permanence. The data below shows what reform has already delivered — and where Louisiana still has ground to make up.
Summer 2026 · pelicanpolicy.org
LouisianaEconomic Report
The Pelican Institute highlights Louisiana’s economic situation
Louisiana enters the second half of 2026 with encouraging economic momentum. Output, personal income, jobs, and population have increased in the latest available data. These gains offer evidence that Louisiana can compete for investment and opportunity, but lasting prosperity will require policymakers to build on recent reforms rather than rely on temporary projects, subsidies, or government-directed development.
- 2.9%GDP growth, annualized rate,
2025 Q4–2026 Q1 - 6.3%Personal income growth,
annualized rate, 2026 Q1 - +16,700Nonfarm payroll jobs,
May 2025 to May 2026 - +20,449Residents, July 1, 2024
to July 1, 2025
Compared with neighboring states
Gross Domestic Product
Louisiana’s GDP growth ranked 6th best in the United States.
Each mark is one state. Louisiana is the highlighted mark.
Source: U.S. Bureau of Economic Analysis, Gross Domestic Product by State and Personal Income by State, 2025 Q4–2026 Q1. bea.gov
Employment
Job growth has edged higher,
but Louisiana still needs
more people working
Louisiana had about 2.01 million nonfarm payroll jobs in May 2026, an increase of roughly 16,700 jobs from May 2025.
Nonfarm payroll jobs, May 2026
2.01
million jobs, up roughly 16,700 over the year.
Growth by industry, year over year
Construction employment increased 5.4%, while manufacturing employment rose 2.1% over the year.
Unemployment rate
4.5%
Louisiana
4.3%
United States
Louisiana’s unemployment rate was 4.5%, slightly above the 4.3% national rate.
Source: Federal Reserve Economic Data, All Employees: Total Nonfarm in Louisiana. fred.stlouisfed.org
Population and outlook
The turnaround is welcome,
but interstate migration
remains a warning sign
Louisiana’s population increased by 20,449 residents between July 1, 2024, and July 1, 2025, reaching 4,618,189. This was the state’s second consecutive annual increase, although Louisiana remained about 39,700 residents below its 2020 population base.
4,618,189Residents as of July 1, 2025
+20,449
Residents, between July 1, 2024, and July 1, 2025 — the second consecutive annual increase.
−39,700
Residents below Louisiana’s 2020 population base.
−$3.6B
In income, and more than 110,000 residents, lost to net interstate migration from 2018 to 2023.
Louisiana ranked 44th in net interstate migration from 2018 to 2023, losing more than 110,000 residents and $3.6 billion in income.
Each mark is one state. Louisiana is the highlighted mark.
Population and migration figures as published in the Pelican Institute's Louisiana Economic Report, Summer 2026.
Louisiana Economic Report · Summer 2026