Louisiana’s Economy Is Gaining Ground. Now Build on It.
Louisiana is creating more private-sector jobs, attracting investment, and giving families new reasons to build their futures here. After years of economic struggles, that’s progress worth celebrating.
Employers across Louisiana added about 32,100 payroll jobs over the past year, nearly all in the private sector. Construction employment surged 12.7%, manufacturing grew 2.3%, and professional and business services increased 3.2%, according to the Bureau of Labor Statistics. Meanwhile, government employment barely changed, rising just 0.2%.
Private-sector jobs are driving the gains
Employment growth over the past year, by sector
Source: Bureau of Labor Statistics
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| Sector | Change over past year |
|---|---|
| Construction | +12.7% |
| Professional and business services | +3.2% |
| Manufacturing | +2.3% |
| Government | +0.2% |
That’s encouraging because lasting prosperity comes from people producing goods and services, starting businesses, and earning paychecks, not expanding government payrolls.
The state’s finances tell a similar story
There’s more good news in the state’s finances. The Louisiana Treasury reports that major state tax collections increased 19% in July and August compared with the same months last year. Individual income tax collections rose 39%, oil and gas severance taxes increased 44%, and corporate income and franchise tax collections jumped 482% from a small base.
Tax collections rose across major categories
July and August collections compared with the same months last year
The corporate income and franchise bar is shortened to fit; its 482% jump came from a small base. Source: Louisiana Treasury
View data table
| Collection type | Change |
|---|---|
| Major state tax collections | +19% |
| Individual income tax | +39% |
| Oil and gas severance taxes | +44% |
| Corporate income and franchise taxes | +482% |
Higher collections don’t automatically mean a stronger economy. Tax payments fluctuate, and recent reforms affect revenue. But these numbers, alongside stronger private-sector employment, show why Louisiana’s economic story deserves a closer look.
Reforms that improved competitiveness
Governor Jeff Landry and legislators have helped improve the state’s competitiveness. They replaced graduated individual income taxes with a flat 3% rate, reduced the corporate income tax to 5.5%, eliminated the corporate franchise tax, and expanded education freedom.
These changes matter to a contractor hiring workers in Lake Charles, a manufacturer considering expansion in Baton Rouge, or a family deciding whether to stay in Louisiana. But progress doesn’t mean the work is finished.
Louisiana still has ground to make up
The latest Bureau of Economic Analysis report shows Louisiana’s real GDP grew just 0.2% at an annualized rate in the second quarter of 2026, compared with 2.2% nationally. Personal income increased 2.8%, below the national rate of 4.7%. Neighboring states also performed better. Texas grew 2.2%, Mississippi 2.1%, and Arkansas 1.1%.
Second quarter of 2026: Louisiana vs. the nation and neighbors
Real GDP growth, annualized rate
Source: Bureau of Economic Analysis
View data table
| Area | Real GDP | Personal income |
|---|---|---|
| Louisiana | 0.2% | 2.8% |
| United States | 2.2% | 4.7% |
| Texas | 2.2% | — |
| Mississippi | 2.1% | — |
| Arkansas | 1.1% | — |
That’s a reminder that Louisiana still has ground to make up. Quarterly economic growth can swing because of energy production, business investment, construction schedules, and inventories. A slower quarter doesn’t erase the progress underway, especially when businesses continue adding jobs. And recent reforms take time to influence hiring, investment, and family decisions.
The next step: build on the progress
Our Summer 2026 Economic Report highlighted earlier improvements. The latest figures reinforce the importance of building on them. The next step should be stronger fiscal discipline. Louisiana can enact a government growth limit by keeping spending increases below population growth plus inflation and using recurring surpluses to reduce the individual income tax toward elimination.
The state should also expand opportunities by fully implementing the One Door to Work reforms, making education freedom a reality, expanding successful criminal justice reentry programs, reducing unnecessary regulations, and creating a more predictable legal environment. These policies would help more people enter the workforce, give businesses confidence to invest, and make Louisiana a better place to raise a family.
- Fiscal disciplineEnact a government growth limit
- Fiscal disciplineUse recurring surpluses to reduce the individual income tax toward elimination
- OpportunityFully implement the One Door to Work reforms
- OpportunityMake education freedom a reality
- OpportunityExpand successful criminal justice reentry programs
- OpportunityReduce unnecessary regulations and create a more predictable legal environment
Louisiana’s economy won’t improve in a straight line. But recent job gains and reforms provide reasons for optimism. The goal now is to turn encouraging progress into sustained growth, higher real incomes, and more opportunities for every Louisianan to prosper.
