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The Alabama Department of Labor announced on Friday that the state’s labor force participation rate for July 2024 remained unchanged at 57.5 percent. Despite the overall steadiness, the participation rate among prime-age workers—those aged 25 to 54 years—increased slightly by one-tenth of a percentage point to 79.3 percent from the previous month. This marks a notable year-over-year increase of 1.5 percentage points from 77.8 percent in July 2023, reflecting a positive trend in the state’s economic recovery efforts.
Alabama Department of Labor Secretary Fitzgerald Washington highlighted the significance of this growth, particularly within the prime-age demographic, as a key indicator of the state’s economic resilience. “While we all are working to increase our labor force participation rate, the continued growth, especially year over year, in the number of prime-age Alabamians who are holding down a job, remains a positive trend in the state’s economy,” Washington stated. “All other economic indicators showed improvement this month, as well.”
The state’s preliminary, seasonally adjusted unemployment rate for July 2024 declined slightly to 2.8 percent, down from June’s rate of 2.9 percent. However, this figure represents an increase from the 2.4 percent unemployment rate recorded in July 2023. The latest rate accounts for 66,591 unemployed individuals, a decrease from 67,782 in June, yet an increase from 55,583 in July of last year.
Alabama also saw a surge in employment figures, with the number of people counted as employed reaching a record high of 2,273,759—an increase of 20,156 from the previous year. The civilian labor force also expanded to a new peak of 2,340,350, with an additional 31,164 people joining the workforce over the past year.
Wage and salary employment saw substantial growth as well, rising by 52,500 jobs over the year to reach a total of 2,211,700. The private education and health services sector led the gains, adding 13,500 jobs, followed by the leisure and hospitality sector with 9,400 new positions, and the trade, transportation, and utilities sector with 9,000 additional jobs.
Washington underscored the significance of these developments, saying, “The labor force continues to increase—by more than 30,000 people in the last year—and those people are getting jobs. Our economy added more than 52,000 jobs in the past year, which is great news for Alabama.”
County-level data revealed that Shelby and Morgan Counties recorded the lowest unemployment rates at 2.5 percent, followed by Marshall and Cullman Counties at 2.6 percent, and St. Clair, Madison, Limestone, and Elmore Counties at 2.7 percent. On the other end of the spectrum, Wilcox County experienced the highest unemployment rate at 8.8 percent, with Perry and Dallas Counties following at 7.0 percent and 6.2 percent, respectively.
Among major cities, Vestavia Hills boasted the lowest unemployment rate at 2.2 percent, while Trussville and Hoover reported 2.3 percent. Conversely, Selma registered the highest unemployment rate at 7.4 percent, followed by Prichard at 5.7 percent and Bessemer at 4.4 percent.
These figures collectively point to a labor market that is not only stabilizing but also showing signs of growth, particularly in sectors critical to Alabama’s economic vitality. As the state continues to build on these gains, attention will likely focus on further improving labor force participation, especially among prime-age workers, to sustain this positive momentum.
