Economy/Cost of Living

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Louisiana’s economy relies upon both industry and agriculture. Seafood is a major product, with shrimp, menhaden, and oysters being the primary catches. Other important agricultural products include cotton, soybeans, sugarcane, cattle, dairy products, poultry and eggs, rice, sweet potatoes, pecans, strawberries, and hay.

Louisiana boasts considerable mineral wealth. The state is the national leader in salt and sulfur production, has many offshore deposits of crude petroleum, and is a major producer of natural gas. Coal products are also important. As a result, related industries such as oil refineries, petrochemical plants, and foundries aid the economy.

With rich stands of forests, Louisiana boasts abundant timber, resulting in economic commodities such as lumber and paper products. Other important industries include food processing, transportation equipment, electronic equipment, and port-related industries.

Tourism has become increasingly important to the Pelican State. Despite the devastation caused by Hurricane Katrina to New Orleans and other areas in 2005, Louisiana is showing a comeback as tourists rediscover the many unique cultures, festivals such as Mardi Gras, excellent food, history, and scenery in the state.

In 2005, Louisiana ranked 48th in the U.S. in median household income at $36,729 and 50th in per capita income (PCPI) at $24,664. The average annual growth rate of PCPI between 1995 and 2005 was 2.6 percent, compared to the average annual growth rate for the nation at 4.1 percent. The Pelican State boasts a home ownership rate of 72.5 percent. Its unemployment rate is 4.0 percent. Louisiana’s top bracket of personal income tax is 6 percent; the state levies a sales tax of 4 percent. Louisiana’s cost of living ranks lower than the national average.

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