Basic information about the Louisiana Economy
Overview of the state’s economy
- Louisiana is the 31st largest state in the nation and is approximately one-third the size of Japan.
- Louisiana is the 25th most populous state in the U.S. with a total population of 4.6 million. Though 95% of the land is considered rural, 73% of the population resides within the remaining 5% of land that is classified urban.
- The civilian labor force in Louisiana is composed approximately 2.1 million people. Nearly 62% of the workforce is concentrated in the 1) trade, transportation &utilities, 2) government, 3) education & health services, and 4) leisure & hospitality sectors. Only about 1.8% of the state’s employed work in agriculture. The Louisiana unemployment rate was 4.9% in May 2014.
Priority economic sectors of state government
- - After recent declines in funding, Louisiana has increased education spending by nearly $150 million in the FY2015 budget.
- A $40 million Workforce & Innovation for a Stronger Economy (WISE) fund was also created during the 2014 legislative session. This fund will provide competitive grants to two- and four-year colleges in the state to develop or enhance educational programs in high-demand fields. A portion of the funding will be distributed based on the schools’ ability to secure federally-funded research projects. Schools will also need to partner with a business that will provide a 20% private matching grant for each grant-awarded program. Gov. Jindal hopes that this initiative, which he proposed, will produce more workforce-ready Louisiana students and lure more advanced industries to the state.
- A new Louisiana Board of International Commerce is responsible for the state’s master plan in international business and will oversee its implementation to enhance Louisiana’s imports and exports, manufacturing development, and recruitment of foreign direct investment. The 23-member Board is made up of state agency heads and representatives from regional economic development organizations, business groups, airports, ports, and other relevant groups. The master plan focuses on infrastructure, trade outreach, workforce development, and lead generation.
- Louisiana also established five new trade representative offices in high-potential overseas markets. Offices were created in Japan, the United Kingdom, Germany(E.U), China, and South Korea. Louisiana officials hope that these offices will raise the state’s profile overseas and attract FDI in their most competitive sectors.
Japanese companies in Tennessee:
- State government reports nearly 4,000 people are employed by Japanese owned parent companies.
- Shintech, subsidiary of Shin-Etsu Chemical Co., Ltd, operates two facilities in Louisiana. Last year, they announced a $500 million expansion of their Louisiana operations that is scheduled to be complete sometime in 2015. Additional investment is being considered in order to produce ethylene internally, rather than purchasing from partners. However, that decision is not yet final.
- There has been significant Japanese investment in export terminals for Liquefied Natural Gas(LNG). In June, Cameron LNG in Hackberry, Louisiana moved one step closer to being able to export LNG to non-Free Trade Agreement countries. Japanese partners included in that project include Mitsubishi and Mitsui & Co. If regulatory approvals go as hoped by Cameron, construction will begin later this year and operations will begin in 2017 and 2018.
Basic economic indicators
- Louisiana’s real GDP is 222 billion dollars, the 24th highest in the United States. The real economic growth rate rose 1.3% from 2012. Per Capita Personal Income in 2013 was nearly $41,000,91% of the national average. Louisiana ranked the 31st among the states in personal income average.
- The seasonally adjusted state unemployment rate was 4.9% in May 2014, better than the national level of 6.3% for May.
- GDP ratio by industry for 2013: manufacturing 20%, government 11%, real estate, rental & leasing, 11%, mining 8%. Agriculture is 1%. (Please refer to the Jurisdictional Information section of our webpage for details.)
Economic relations with Japan
- State government is currently working to improve their tracking of foreign direct investment. Currently, they report that four(4) Japanese parent companies have operations in the state, employing about 4,000 people.
- Imports and Exports: Major exports to Japan include agricultural products, chemicals, petroleum & coal products, and beverages & tobacco products. Louisiana exports to Japan total about $2.8 billion annually. Top imports from Japan include petroleum & coal products, primary metal manufacturing, chemicals, and machinery (excl. electrical). Annual imports from Japan were $289 million in 2012 and $366 million in 2013.
Contact information about Louisiana’s Representative Office in Japan
Mr. Masao Kumori, Director State of Louisiana Japan Office
21F Shiba-Rikyu Bldg, 1-3 Kaigan, Minato-ku,
Tokyo 105-0022 JAPAN