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Alabama labor force hits record high, unemployment steady at 2.9 percent

Alabama’s preliminary, seasonally adjusted unemployment rate remained steady at 2.9 percent.

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Alabama Department of Labor Secretary Marty Redden announced today that the state’s labor force participation rate for October rose by 0.1 percent to 57.6 percent. However, the percentage of prime-age workers—those aged 25-54—declined by 0.2 percent to 79.1 percent for the month, though it reflected a year-over-year increase of 1 percent, up from 78.1 percent in October 2023.

“This month, we experienced a slight increase in our labor force participation rate. Any growth is always welcome news,” said Secretary Redden. “Additionally, the year-over-year growth of prime-age workers is also encouraging. Nearly 80 percent of prime-age workers are out there doing their jobs and providing for their families.”

Alabama’s preliminary, seasonally adjusted unemployment rate remained unchanged at 2.9 percent from September 2024. However, it edged up slightly compared to October 2023’s rate of 2.8 percent. The 2.9 percent rate represents 69,271 unemployed individuals, an increase from 67,395 in September and 64,027 a year ago.

The number of employed Alabamians reached a record high of 2,280,863, reflecting an annual increase of 18,840. Similarly, the civilian labor force set a new record with a year-over-year addition of 24,084 people, bringing the total to 2,350,134.

Wage and salary employment also hit a new record at 2,220,700 jobs, marking a year-over-year increase of 40,400 positions. Growth was led by the private education and health services sector (up 10,500), government sector (up 6,300), and leisure and hospitality sector (up 5,800).

Monthly gains in wage and salary employment totaled 7,600, driven by increases in professional and business services (up 3,000), government (up 2,900), and private education and health services (up 1,100).

“While Alabama employers continue to add jobs at record-high rates, we’re also seeing wage growth, which is beneficial to our entire economy,” said Redden. “We are currently supporting more jobs than ever before, and our hardworking citizens have seen their average weekly wages increase over the year by nearly $25.”

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Average weekly wages rose by $24.97 over the year to $1,056.18. The construction industry set a record with weekly wages averaging $1,385.67 in October, reflecting a $114.61 increase over the year.

Counties with the **lowest unemployment rates** include Shelby County (2.4 percent), Marshall County (2.5 percent), and Madison and Morgan Counties (2.6 percent). Those with the **highest unemployment rates** are Wilcox County (7.7 percent), Clarke County (6.1 percent), and Dallas and Greene Counties (5.9 percent).

Major cities with the **lowest unemployment rates** are Homewood, Vestavia Hills, and Trussville (2.2 percent), followed by Alabaster and Hoover (2.3 percent) and Madison (2.4 percent). Cities with the **highest unemployment rates** include Selma (6.9 percent), Prichard (5.7 percent), and Bessemer (4.5 percent).

Alabama continues to see record employment and wage growth, signaling resilience in its labor market despite minor fluctuations in participation and unemployment rates.

The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

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