Louisiana’s Economy Needs Bold Reforms to Reverse Slow Growth and Out-Migration

Originally posted at Pelican Institute.

​The latest economic data for Louisiana paint a troubling picture of slow job growth, lagging income gains, and continued out-migration. While the state saw a modest population increase in 2024 after years of decline, thousands of residents still left for better opportunities elsewhere. Louisiana continues to struggle with weak economic performance compared to neighboring states, reinforcing the urgent need for pro-growth reforms that create jobs, attract investment, and make the state a more competitive place to live and work.

Job Growth Lags Behind Neighboring States
Louisiana’s nonfarm employment grew by 9,400 in the fourth quarter of 2024, bringing total employment to 1.97 million. This represents an average of 3,133 new jobs per month, which is positive but still well below the pace of growth in the region. Compared to the previous year, Louisiana had the slowest job growth rate in the third quarter of 2024 among neighboring states, increasing by just 0.9%.

For comparison, states likeAlabama (1.9%),Arkansas (1.8%),Mississippi (1.3%), andTexas (2.0%) all outpaced Louisiana in job creation. Florida added 218,700 jobs (1.5%) over the same period, while Texas saw 293,100 new jobs (2.0%). Louisiana’s sluggish job growth means fewer opportunities for residents and less economic dynamism.

Economic Growth Among the Weakest in the Nation
Louisiana’s real GDP grew by 2.3% in the third quarter of 2024, bringing the total economic output to $257.2 billion. Unfortunately, this ranked 38th among U.S. states and was the worst growth rate in the region.

By contrast, states likeAlabama (6.0%),Arkansas (6.9%), andTexas (4.2%) experienced much stronger economic growth. The national economy also grew faster, meaning Louisiana is falling behind in its ability to expand businesses, attract capital, and create high-paying jobs.

Personal Income Growth Remains Weak
Personal income growth is key to economic prosperity, yet Louisiana ranks near the bottom nationally. In the third quarter of 2024, personal income in the state grew by just 2.3%, placing Louisiana 40th in the country and well below the U.S. average of 3.2%.

Once again, Louisiana trailed neighboring states, withAlabama (5.0%),Arkansas (5.4%),Mississippi (4.8%), andTexas (4.0%) all experiencing higher income growth. Slower income growth means Louisiana residents have less spending power and fewer financial opportunities than workers in faster-growing states.

Out-Migration Continues to Drain People and Wealth
Louisiana’s population grew slightly in 2024, adding 9,669 residents to 4.6 million. However, this increase masks a troubling trend: thousands of Louisianans continue to leave for better opportunities elsewhere.

The state experienced a net loss of 29,692 residents (-0.38%) due to domestic out-migration, ranking 7th worst in the nation. This trend of out-migration has serious long-term consequences, reducing the state’s workforce and eroding the tax base.

Even more concerning is the financial toll of this exodus. In 2022, Louisiana lost $882 million in adjusted gross income due to residents moving to states withlower taxes and better job opportunities. Over the last few years (2019–2022), this income loss has totaled $2.3 billion, making Louisiana one of the biggest losers of wealth in the country.

The Case for Pro-Growth Reform
The latest data show that Louisiana is falling behind. Without major reforms, the state will continue to struggle with stagnant job growth, low incomes, and ongoing outmigration. Policymakers must take decisive action to reverse these negative trends and make Louisiana more competitive and business-friendly.

Here’s what pro-growth reforms should include:

Tax relief: Reduce the tax burden on individuals and businesses to attract new investment and retain workers.
Regulatory reform: Cut excessive red tape that stifles job creation and entrepreneurship.
Workforce development: Improve education and job training programs to equip residents with in-demand skills.
Economic freedom: Reduce government spending and bureaucracy to create a more dynamic, opportunity-driven economy.
By removing barriers to growth, Louisiana can boost job creation, raise incomes, and retain its population rather than losing residents to more prosperous states. The time for action is now—Louisiana cannot afford to keep falling behind.

Read our Winter 2025 Quarterly Economic Report here.

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