Louisiana jobs are paying more, on average. Will it draw employees back to work?
The average weekly pay for workers in Louisiana rose around 6.1% from the end of 2020 to the end of 2021, which may be the result of employers raising salaries to draw more workers.
The state's increase in wages beat the national average and ranking among the middle of the pack among U.S. states and territories, according to new data from the U.S. Bureau of Labor Statistics.
The 6.1% average wage increase in Louisiana is the largest recorded in the last few years, dating back to 2017, according to BLS data. Over the course of 2020, the average weekly wage increased 5.2%, and none of the previous three years saw an increase greater than 3.5%.
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Businesses struggled for much of 2021 to hire new workers and fill their staffs, which led many to bump up their wages and benefits to entice more workers. In 2017, the average weekly wage was around $900, but it has increased by around 26.9% by the end of 2021, jumping to $1,142.
Louisiana's average pay is still low compared to other states and territories, ranking 41st. The national average for weekly wage is around $1,418.
Of Louisiana's most populous parishes, Jefferson Parish had the greatest average wage increase with 8.2%, tying for 33rd among the country's 344 most populous counties. Average weekly wages increased 6% in St. Tammany Parish, ranking 102nd, and Caddo Parish ranked 127th with 5.6%.
Lafayette Parish's average wages increased 5.2%, ranking 157th, which was tied with East Baton Rouge Parish. Orleans Parish had a 4% increase, which was ranked 230th.
Calcasieu Parish has the smallest increase of the Louisiana parishes included with 2.4%, ranking 285th.
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Generally speaking, Louisiana's parishes are low overall for average weekly wage compared to counties in other states. Orleans Parish has the highest weekly wage in the state with $1,318, which is 138th among the 344 included counties.
As wages rose across the state, productivity also increased. Labor productivity — which measures the amount of goods or services produced per hour — increased by 0.8% from 2020.
The value of the goods and services produced by Louisiana workers rose by 2.9%, and the total number of hours worked in Louisiana rose 2.2%.
Unit labor costs — which measures the cost of the labor required to produce one unit — rose 5.5%, which was the 6th highest in the nation. That could be tied to Louisiana's increase in wages. Louisiana saw a 8.6% increase in labor compensation and a 6.3% increase in hourly compensation.
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This article originally appeared on Lafayette Daily Advertiser: Average wages in Louisiana rise as businesses try to draw in workers
