MONTGOMERY, Ala. (WDNews) — Alabama’s job market closed out the year with strong numbers, as the state’s unemployment rate remained low and the number of people employed reached a new record.
According to the Alabama Department of Workforce, the state’s preliminary, seasonally adjusted unemployment rate for December held steady at 2.7%. That is down from 3.3% in December 2024. The rate reflects 64,150 unemployed people statewide, compared to 65,264 in November and 78,478 one year ago.
“Alabama continues to lead the nation with one of the lowest unemployment rates in the country,” said Workforce Secretary Greg Reed. “More and more people are entering our workforce and they are finding good, meaningful employment. I’m proud of Alabama’s achievements and hope to continue making strides in the year ahead.”
State officials reported the number of people employed increased by 35,819 over the year, reaching a record high of 2,317,206. Alabama’s civilian labor force also grew to 2,381,356, with 21,491 more people joining the workforce over the year.
Wage and salary employment rose by 9,100 over the year to 2,221,300 jobs. The largest gains were seen in leisure and hospitality, which added 6,700 jobs, followed by private education and health services with 4,900 jobs, and construction with 3,400 jobs.
“As we continue to grow jobs in Alabama, wages are also increasing,” continued Reed. “For example, the construction sector saw a new record high in wages this month. When construction wages increase, that signals positive economic growth, with each construction dollar spent generating an additional $2-$3 in related economic activity.”
Officials said construction wages increased to a new record weekly average of $1,421.56.
Counties with the lowest unemployment rates were Shelby and Elmore at 1.8%. Several counties followed closely at 1.9%, including St. Clair, Morgan, Marshall, Madison, Limestone, Chambers, and Blount. Counties reporting the highest unemployment rates were Perry at 5.1%, Monroe at 4.8%, and Greene at 4.7%.
Among major cities, the lowest unemployment rates were reported in Trussville and Alabaster at 1.6%, followed by Pelham and Hoover at 1.7%. Cities with the highest unemployment rates included Prichard at 4.7%, Selma at 3.3%, and Bessemer and Anniston at 3.2%.
The unemployment figures are based on two surveys. The Current Population Survey, conducted by the Census Bureau, measures how many people are working or actively looking for work. The establishment survey, conducted by the Bureau of Labor Statistics, measures the number of jobs reported by employers.
Officials also noted that the data is seasonally adjusted, a process used to account for expected workforce changes such as holiday hiring and new graduates entering the job market.
