Louisiana Association of Business and Industry President and CEO Will Green
Louisiana has made progress in job growth and private-sector wage increases, reversing economic setbacks of past decades and building momentum driven at least partly by legal and insurance reforms, a new report concludes.
The 2026 LA Driven Annual Report compiled by the Louisiana Association of Business and Industry (LABI) said a number of economic measurements, including a 3.52% increase in private-sector wages from 2024 to 2025 and an increase of 19,100 nonfarm jobs over the same time period, demonstrate a strengthening of the state’s economic competitiveness. In previous years, Louisiana has ranked among the bottom-five states for employment expansion, according to LABI.
“Louisiana is gaining real momentum,” Will Green, LABI’s president and CEO, said in a prepared statement. “After years of lagging behind our Southern peers, we are now seeing tangible improvements in job growth, wage growth and foundational education outcomes. That progress is the result of intentional, coordinated actions and reflects focused, pro-growth policy decisions and a renewed commitment to competitiveness.”
Louisiana’s job growth from August 2024 to August 2025 was the 24th best performance among the 50 states, and its wage increases were also 24th best, LABI reported. Louisiana’s job growth increased 0.96% over this time period, with gains in manufacturing jobs reaching 2.6%, the study found.
Even so, not all the economic news was positive.
“Despite this overall growth, employment declined in construction, financial activities and professional and technical services, underscoring that challenges remain,” the study states.
The report found that Louisiana’s high school graduation rate had reached 85% in 2025 and that reading proficiency was also on the upswing.
Reforms approved during the 2025 legislative session were cited as reasons for an improving business climate.
“Foremost among these were legal and insurance market reforms designed to restore balance, transparency and predictability to the civil justice system, a necessary step toward reducing costs and improving the state's overall competitiveness,” the report states. “While these are not yet reflected in the data contained in this report, they represent critical momentum toward improving Louisiana's competitiveness and business climate.”
Recent statistics from the Louisiana Department of Insurance seem to reinforce the trends described in LABI’s annual report. Rates for private auto passenger insurance declined 5.8% last year, according to Insurance Commissioner Tim Temple’s office.
“Louisiana insurance rates decreased statewide by an average of -0.4%, compared to consistent increases between 2021 and 2024,” the Department of Insurance reported. “While total homeowners premiums paid in Louisiana are increasing by about $135 million for filings approved in 2025, private passenger auto policyholders are paying approximately $345 million less as a result of last year’s filings.”
Green said the state must continue to pursue reforms and embrace innovation in order to build on the 2025 improvements.
“While we’ve cleared important milestones, we cannot afford complacency,” he said. “Population trends, workforce shortages and global competition remain real challenges. Staying on this trajectory will require continued focus on workforce development, public safety and a stable, predictable legal and business climate.”
