Alabama’s Unemployment Rate Holds Steady at 2.7%

News Release

For Immediate Release: April 7, 2026

Alabama's Unemployment Rate Holds Steady at 2.7%

Wages and Number of People Employed at New Record High

MONTGOMERY - Alabama Department of Workforce Secretary Greg Reed announced today that Alabama's preliminary seasonally adjusted unemployment rate for January held steady at 2.7%. This is below January 2025's rate of 3.1%. The rate represents 64,061 unemployed people, compared to 64,776 in December and 72,543 in January 2025.

"More and more people are continuing to join our workforce and those people are finding jobs," said Reed. "When we are repeatedly seeing our employment number reach new record highs, that's certainly something to be proud of and we will continue to work to improve those numbers by providing meaningful and valuable services to Alabamians through our workforce assistance programs."

The number of people counted as employed increased by 17,703 over the year to 2,323,588, a new record high. The civilian labor force also increased to 2,387,649, with 9,221 more people joining over the year.

Over the year, wage and salary employment increased by 10,600 to 2,184,200, with gains in the leisure and hospitality sector (+6,400), the professional and business services sector (+5,500), and the construction sector (+3,300), among others.

"As we start off 2026, we have yet again set a new record high for weekly wages," continued Reed. "Three additional industries also realized new record high wages in January."

Average weekly wages increased by $85.22 over the year to a new record high of $1,150.59. Wages in the manufacturing sector, trade, transportation, and utilities sector and the professional and business services sector all increased to new record highs.

Counties with the lowest unemployment rates are: Shelby and Elmore Counties at 2.3%, Blount County at 2.4%, and St. Clair, Morgan, Madison, Limestone, Lee, Lawrence, Chilton, Chambers, and Autauga Counties at 2.5%. Counties with the highest unemployment rates are: Perry County at 6.6%, Greene County at 6.4%, and Monroe County at 6.2%.

Major cities with the lowest unemployment rates are: Trussville and Pelham at 2.0%, Madison at 2.1%, and Vestavia Hills, Hoover, and Alabaster at 2.2%. Major cities with the highest unemployment rates are: Prichard at 6.2%, Selma at 4.4%, and Mobile and Anniston at 4.0%.

"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.