News Release

For Immediate Release: August 15, 2025

Alabama’s Labor Force Participation Rate Decreases Slightly

Employment at New Record High

MONTGOMERY – Alabama Department of Workforce Secretary Greg Reed announced today that Alabama’s labor force participation rate for July decreased slightly to 57.9%, down from 58.0% in June. Over the year, the rate increased by four-tenths of a percentage point. The percentage of prime-age workers also decreased slightly by one-tenth of a percentage point to 78.4% over the month. Prime-age workers are those aged 25-54 years.

“Our unemployment rate continues to remain low and is well below the national unemployment rate,” said Reed. “We are continuing to see yearly gains in our labor force participation rate, and our economy added more than 28,000 new jobs. These are all signs of continued positive economic news in Alabama.”

Alabama’s preliminary, seasonally adjusted July unemployment rate is 3.0%, down from June 2025’s rate of 3.2%.  July’s rate is equal to July 2024’s rate.  The rate represents 72,506 unemployed persons, compared to 75,640 in June and 71,308 in July 2024.

The number of people counted as employed increased by 33,876 over the year to 2,311,434, a new record high. The civilian labor force also increased to 2,383,940, with 35,074 more people joining over the year.

Over the year, wage and salary employment increased by 28,700 to 2,211,200, with gains in the private education and health services sector (+10,100), the government sector (+5,100), and the leisure and hospitality sector (+4,600), among others.

Counties with the lowest unemployment rates are:  Shelby, St. Clair, Limestone, Elmore, and Blount Counties at 2.3%, Morgan, Madison, Baldwin, and Autauga Counties at 2.4%, and Marshall, Lawrence, Cullman, and Cleburne Counties at 2.5%.  Counties with the highest unemployment rates are: Perry County at 6.9%, Greene County at 5.8%, and Wilcox County at 5.6%.

Major cities with the lowest unemployment rates are: Vestavia Hills at 2.0%, Trussville, Pelham, and Hoover at 2.1%, and Madison and Alabaster at 2.2%.  Major cities with the highest unemployment rates are: Prichard at 6.3%, Selma at 4.8%, and Tuscaloosa at 4.5%.

 

“Seasonal adjustment” refers to BLS’s practice of anticipating certain trends in the labor force, such as hiring during the holidays or the surge in the labor force when students graduate in the spring, and removing their effects to the civilian labor force.

The Current Population (CPS), or the household survey, is conducted by the Census Bureau and identifies members of the work force and measures how many people are working or looking for work.

The establishment survey, which is conducted by the Bureau of Labor Statistics (BLS), a division of the U.S. Department of Labor, surveys employers to measure how many jobs are in the economy.  This is also referred to as wage and salary employment.

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