Many Louisiana communities are being “left behind” by an economy that increasingly funnels wealth into only a few—mostly suburban—areas, according to a new report from the Economic Innovation Group.
The South has a disparate and fragmented economy, where rural and some urban areas have fallen behind, says the report, which analyzes the share of people living in “distressed” communities. Conversely, suburban areas throughout the country are more “prosperous” on average.
For Louisiana, the report is only the latest to find the state is plagued by low education levels, high poverty, low incomes and unemployment, among other factors. The state has the fifth-largest share of its population living in distressed areas compared to other states, and ranks No. 49 of 51 in share of people living in “prosperous” communities.
Certain communities are taking advantage of the national economic gains made during the recovery of the 2008 financial crisis, EIG says, while other areas are not.
“Outside of those top communities, economic well being is often tenuous at best,” the authors write. “And, at worst, millions of Americans are stuck in places where what little economic stability exists is quickly eroding beneath their feet.”
Only 9.6% of Louisianans live in “prosperous” zip codes, the study found, compared to 26% nationally. Prosperity in the state is largely clustered in suburban metropolitan areas—the outlying neighborhoods of places like Baton Rouge, New Orleans and St. Tammany Parish.
And more than 30% of the state’s population lives in distressed areas—a metric created by EIG that includes seven factors to measure economic well-being. That is roughly double the national average.
