Economic Stabilization Amid Challenges in Landes: Update on 2025 Trends
Mid-2025 sees stabilization in Landes economy, facing challenges especially in construction and agro-food sectors.
Key Points
- • Economic stabilization with challenges in construction and agro-food sectors.
- • Only 22% of local businesses report revenue growth; investment down by 29.2%.
- • Employment stable but mostly in temporary positions, with a slight 0.6% increase overall.
- • Significant drops in property listings and construction permits, particularly in real estate.
The economic landscape in the Landes region appears to be stabilizing, yet it continues to grapple with significant challenges across various industries as of mid-2025. A survey conducted by the Chamber of Commerce and Industry (CCI) revealed concerning trends, particularly emphasizing the struggles within the construction and public works sectors. François Lafitte, president of the CCI, noted the necessity of reliable economic indicators for sound decision-making, given the broader economic context that sees France experiencing a mere 0.1% growth in the first quarter of 2025 amidst the lowest inflation rates since 2021.
In detail, only 22% of businesses in Landes reported revenue growth, while 40% experienced declines, and 39% of companies indicated that their order books had shrunk. Investment activities plunged dramatically, recording a 29.2% decrease in Q1 2025 compared to the same period in 2024, with over 61% of businesses stating they had no immediate investment plans.
Despite these financial challenges, employment in the region maintained stability, reflecting a modest 0.6% rise in jobs over the past year—the highest job creation rate in the Nouvelle-Aquitaine region. However, the nature of this employment growth predominantly involved temporary or fixed-term positions, and there was also a noticeable 4.1% drop in temporary employment during Q1 2025 compared to the previous quarter.
The agro-food sector faces intensified pressures from soaring costs and diminishing consumer demand, impacting pricing strategies severely. While segments such as duck and labeled chicken sales show signs of gradual recovery, broader order books remain constricted.
Particularly noteworthy is the state of the construction and real estate markets; there has been a striking 40% decrease in property listings paired with a 17.9% drop in housing construction permits, alongside a staggering 48.7% reduction for commercial properties. The wood industry exhibits mixed results, with some businesses prospering while others confront closures, such as the case with Séripanneaux. The chemical sector encounters reduced activity primarily due to increased energy costs and competitive challenges from both Europe and the U.S.
Furthermore, while the health and thermalism sectors are on the way to recovery, they still fall short of pre-COVID performance levels, with current attendance projected at around 80-85% of figures from 2019. Profitability in the health sector also continues to trend downward, evidencing ongoing sector vulnerabilities.
In conclusion, as the Landes economy shows signs of stability, the persistent challenges within key sectors necessitate strategic responses from both local businesses and government entities to ensure more robust economic health moving forward.