Louisiana’s unemployment rate has dropped since March but remains higher than most of its neighbors.
According to the U.S. Bureau of Labor statistics, the Pelican State reached a year high in March at 4.4%, but has steadily decreased, down to 3.9% in July. However, the year over year rate shows a 0.5% increase, with July 2023 at 3.4%.
The quick 1% increase happened over a fall and winter season that saw unemployment rates hit their highest point since 2021. The total number of unemployed individuals in July was 81,161, 10,000 more than the same month last year.
Many of Louisiana’s Southeast neighbors are seeing record lows in unemployment, including Mississippi and Alabama tied at 2.8%. The only regional state that has outpaced Louisiana currently is Texas, with an unemployment rate of 4% for more than a year.
Despite the unemployment increase, total nonfarm employment, or jobs in the private sector and government agencies, increased by over 12,000 jobs. Private education and health services gained 3,000 jobs just since June, and construction added over 9,000 employment opportunities sine July 2023.
Wages are up as well, with construction and manufacturing both seeing an average increase of $200 in weekly earnings from last June.
This difference in job opportunities to unemployment could be explained by Louisiana’s low labor force participation rate at 58%, trailing the national average by around 4%. However, most Southern states also trail the national average, excluding Texas.
Unemployment in the state is largely represented by north Louisiana, with nine of the top 10 parishes in unemployment living in the top half of the boot.
East Carroll Parish hit the highest mark at 10.8% in June, over 2% higher than the next parish, Tensas.
Orleans Parish was middle of the road with 5.3% unemployment. East Baton Rouge was the lowest with 4.2%, tied with East Feliciana, Beauregard and Saint Tammany.
