Central Louisiana economy sees growth amid ongoing challenges

ALEXANDRIA, La. (WNTZ) – The Louisiana State University of Alexandria College of Business released its March 2025 issue of the Central Louisiana Economic Dashboard, highlighting both growth and challenges across employment, consumer spending, housing, travel, and new business sectors. 

Randall Dupont with the LSUA College of Business and author of the Dashboard noted that the data reflects a region navigating post-holiday adjustments while showing resilience in key areas. “Central Louisiana’s economy continues to display a mix of strengths and hurdles, with some sectors rebounding while others face ongoing pressures,” Dupont said. 

In January 2025, the Alexandria Metropolitan Statistical Area (MSA) maintained a low unemployment rate of 4.0%, ranking third among Louisiana MSAs, with 60,332 employed out of a labor force of 62,828. However, Natchitoches Parish saw a significant decline, with employment dropping to 13,371, down 18.3% from January 2024, and its unemployment rate rising to 5.6%. Rapides Parish improved, with its unemployment rate falling to 3.9% from 4.1% a year ago, while Vernon Parish’s rate increased to 6.3% from 5.8%. Statewide, initial unemployment claims in February 2025 rose 16% year-over-year to 1,649, signaling potential job separations, though continued claims dropped 7% month-over-month to 11,891. 

Consumer spending, as measured by sales tax revenue, showed a post-holiday slowdown, with sales tax revenue declining 13% to 31% across all jurisdictions in February 2025, reflecting January activity. Despite this, year-over-year growth was observed in Grant (12%), Natchitoches (8%), and Rapides (3%). Vehicle sales tax revenue in Rapides surged 29%, while online sales tax revenue in Central Louisiana fell 29% month-over-month to $2,252,131 but rose 13% year-over-year. “The decline in consumer spending is expected after the holidays, but the annual growth in online sales highlights a shift in purchasing behavior,” Dupont said. 

The housing market saw modest relief as the 30-year fixed mortgage rate dropped to 6.67% in March, from 6.85% in December 2024. However, Louisiana’s non-current mortgage loan rate rose to 8.6%, the highest in the nation. Active listings of homes for sale in Leesville increased 20.8% year-over-year to 128, while Alexandria and Opelousas saw declines of 6.6% and 10.2%, respectively. Median days on market rose across all MSAs, with Leesville up 22.4% to 93 days. Median listing prices in Alexandria grew 3.5% to $237,000, while Opelousas dropped 12.0% to $174,375. 

Travel indicators were mixed. Gulf Coast gasoline prices fell 7% year-over-year, but hotel occupancy tax revenue varied: Rapides rose 24.3% year-over-year, while Natchitoches declined 16.8%.  

New business applications in Louisiana rebounded with a 15% year-over-year increase in February 2025, but Rapides Parish saw an 18.5% decline in new business establishments to 22 for the month. Gaming revenue reached $268.7 million, up 3.5% year-over-year, driven by land-based (28.8%) and riverboat (4.7%) growth. Sports wagers written rose 39% year-over-year. 

The Central Louisiana Economic Dashboard, a service of the LSUA College of Business, helps leaders monitor regional economic trends. View the full March 2025 issue at www.lsua.edu/dashboard.