Alabama’s May Unemployment Rate is 3.0%

Alabama's May Unemployment Rate is 3.0%

State Again Hits Record High Jobs Count, Multiple Sectors See Record High Wages

MONTGOMERY - Alabama Department of Workforce Secretary Greg Reed announced today that Alabama's preliminary, seasonally adjusted May unemployment rate is 3.0%, up from April 2026's rate of 2.8%. May's rate is above May 2025's rate of 2.9%. The rate represents 72,082 unemployed persons, compared to 67,102 in April and 68,517 in May 2025.

The percentage of prime-age workers participating in the labor force is 79.6%. Prime-age workers are those aged 25-54 years.

The number of people counted as employed decreased by 4,426 over the year to 2,302,424. The civilian labor force measured 2,374,506 in May.

Over the year, wage and salary employment increased by 15,200 to 2,219,000, a new record high, with gains in the construction sector (+5,800), the leisure and hospitality sector (+4,700), and the government sector (+4,300), among others.

"I think the real story is that wages continue to rise," Reed said. "Not only have we reached a record-high statewide wage in 2026, but several industries are experiencing strong growth. That means more money in the pockets of Alabama workers and more families with the ability to comfortably support themselves and plan for the future."

Average weekly wages increased by $72.01 over the year to $1,169.64. The following industries reached new record high wages in May:

• Construction: increased by $63.56 over the year to $1,425.09.
• Professional and Business Services: increased by $123.24 over the year to $1,506.59
• Leisure and Hospitality: increased by $45.59 over the year to $477.04.

Counties with the lowest unemployment rates are: Shelby County at 2.7%, Morgan and Elmore Counties at 2.8%, and Marshall, Madison, Limestone, Chambers, and Blount Counties at 2.9%. Counties with the highest unemployment rates are: Greene and Monroe Counties at 6.2%, Perry County at 6.0%, and Wilcox County at 5.7%.

Major cities with the lowest unemployment rates are: Pelham at 2.4%, Trussville at 2.5%, and Vestavia Hills, Hoover, and Alabaster at 2.6%. Major cities with the highest unemployment rates are: Prichard at 6.0%, Selma at 5.3%, and Bessemer at 4.9%.