Highlights

• Louisiana ranks 46th out of 51 in WalletHub's state economy analysis, making it the 6th worst nationally
• Despite a poor overall ranking, the state leads the nation in exports per capita alongside Texas and Kentucky
• Louisiana shows strong economic growth momentum with a 15th-place GDP performance
• Major challenges include a 49th-place median income and 47th in high-tech industry jobs
• State's energy-driven economy creates unique strengths not captured in tech-focused metrics

Despite Being No. 6 in Worst Economies, Louisiana Has Several Bright Spots

Louisiana leads the nation in exports while showing solid GDP growth despite overall ranking challenges.

LAFAYETTE, La. (KPEL News) - Louisiana ranks as the sixth-worst state economy in the nation according to a new analysis, but the data reveals some interesting economic strengths that might complicate the poor ranking of the state's economic performance.

WalletHub's comprehensive study placed Louisiana 46th out of 51 states and the District of Columbia, with weaknesses in economic health and innovation metrics driving down the overall score. However, the same analysis highlights Louisiana as a national leader in critical economic areas that generate substantial value for both the state and national economy.

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Louisiana Dominates National Export Economy

The good news? Louisiana ranks first in the nation for exports per capita, tying with Texas and Kentucky. The high ranking there represents billions of dollars flowing into the state economy through international trade.

Our export dominance stems from its unique combination of several industries: Energy resources, agricultural production, and world-class port infrastructure along the Mississippi River. The state's oil and gas industry, grain handling facilities, and shipping operations make it an essential gateway for American goods reaching global markets.

This export leadership also means higher employment across multiple sectors and brings outside capital into Louisiana communities, from port operations in New Orleans to agricultural production in our northern parishes. What's more, nearly every cargo ship leaving Louisiana ports loaded with state-produced goods represents economic value that flows directly into local communities.

Strong Economic Growth Indicators Show Positive Momentum

Beyond exports, Louisiana demonstrates encouraging performance in several growth metrics that suggest economic expansion despite overall ranking challenges.

READ MORE on Louisiana's Rankings:

• Louisiana Named Second-Worst State in America for Jobs
• People in These Louisiana Cities Are Struggling to Pay Mortgages

The state ranks 15th nationally in GDP change, indicating solid economic growth compared to most other states. Louisiana also placed 22nd in overall economic activity and 23rd in nonfarm payroll growth, showing businesses are creating jobs and generating increased economic output.

These growth indicators matter because they represent expanding opportunities and economic activity, even if other structural factors limit the state's overall ranking performance.

Ranking Methodology Doesn't Capture Louisiana's Economic Reality

The disconnect between Louisiana's economic strengths and poor overall ranking reflects how modern economic assessments emphasize technology sector metrics that don't align with Louisiana's traditional economic foundations.

Louisiana ranks 47th in the percentage of jobs classified as high-tech industries, which significantly influences innovation rankings in studies like WalletHub's analysis. This ranking doesn't really take into account the technology and expertise required in Louisiana's energy, petrochemical, and maritime industries.

Operating modern refineries requires cutting-edge technology and engineering expertise. Managing deepwater drilling platforms demands advanced technical knowledge. Coordinating international shipping through Louisiana ports involves complex logistics and digital systems. These capabilities represent genuine innovation and technical sophistication that traditional high-tech job categories don't capture.

Similarly, the state's 49th-place ranking in median household income requires context about cost-of-living differences. Louisiana's significantly lower cost of living compared to higher-ranked states means household purchasing power often exceeds what raw income figures suggest.

Real Economic Challenges Affecting Louisiana Residents

Despite these economic strengths, the ranking accurately identifies genuine challenges that impact Louisiana residents daily.

Louisiana's 50th-place ranking in economic health reflects serious concerns about government finances, infrastructure needs, and economic stability. The state's 49th-place ranking in government surplus per capita indicates persistent budget challenges that affect everything from road maintenance to public services.

These fiscal pressures create real consequences for schools, infrastructure, and community services that residents depend on. When the state government struggles financially, the effects ripple through every community in Louisiana.

The lack of high-tech industry diversification also creates economic vulnerability. While Louisiana's energy economy provides substantial strength, economic resilience typically requires multiple strong sectors to weather various market conditions.

Implications for Louisiana's Economic Future

For Louisiana families and businesses, this analysis provides both validation and motivation. The state's export leadership and GDP growth demonstrate that Louisiana contributes significantly to the national economy and creates substantial economic value.

However, the income and diversification challenges highlight why economic development efforts increasingly focus on attracting knowledge-based industries while building upon existing strengths. Louisiana's economic future likely depends on leveraging current advantages while developing new industries that provide higher-wage opportunities.

The ranking also helps explain economic pressures that Louisiana residents experience despite living in a state with considerable natural advantages and global economic connections.

Building on Established Economic Strengths

The state's export leadership provides a foundation for continued growth, especially as global trade relationships evolve. Louisiana's port infrastructure and energy expertise position it well for emerging industries like renewable energy production and advanced manufacturing.

The report's solid GDP growth and job creation numbers indicate Louisiana's economy has genuine momentum. The problem for the Pelican State is in channeling that growth toward higher-wage industries and ensuring economic gains translate into improved household incomes across all Louisiana regions.

Louisiana may rank poorly overall, but it remains an economic force with unique advantages that, properly developed, can support continued prosperity. The question is whether state leadership can build upon demonstrated strengths while addressing the structural challenges that limit broader economic progress.

WalletHub's analysis evaluated states across 28 metrics, including GDP growth, unemployment rates, median income, exports, and innovation indicators. The complete methodology and detailed rankings are available on WalletHub's website.

A positive sign of economic growth? The people who are choosing to move to Louisiana. Here's where those folks are coming from.