News Release

For Immediate Release: December 5, 2025

Alabama’s Unemployment Rate Drops in September

Over the Year, 22,000 Jobs Added

MONTGOMERY – Alabama Department of Workforce Secretary Greg Reed announced today that Alabama’s preliminary, seasonally adjusted September unemployment rate is 2.8%, down from August 2025’s rate of 2.9%. September’s rate is lower than September 2024’s rate of 3.3%.  The rate represents 66,711 unemployed persons, compared to 68,156 in August and 76,773 in September 2024.

“Our unemployment numbers continue to be positive, showing significant gains over the year,” said Reed. “We are continuing to see our prime age workers participating in the labor force. Nearly 80% of workers who should be working are working.  This is very positive news.”

Additionally, Reed announced that Alabama’s labor force participation rate for August held steady at 57.7%. The percentage of prime-age workers increased by a tenth of a percentage point to 78.4% over the month. Prime-age workers are those aged 25-54 years.

The number of people counted as employed increased by 28,752 over the year to 2,310,238. The civilian labor force also increased to 2,376,949, with 18,690 more people joining over the year.

Over the year, wage and salary employment increased by 22,000 to 2,213,000, with gains in the private education and health services sector (+9,200), the construction sector (+4,700), and the leisure and hospitality sector (+4,100), among others.

Reed emphasized that maintaining this progress will require continued partnership between industry leaders, workforce development programs, and policymakers. “We’re committed to supporting workers with the training, resources, and opportunities they need to thrive in a rapidly evolving economy,” Reed said. “The data shows that our efforts are paying off.”

Counties with the lowest unemployment rates are:  Shelby County at 2.3%, Limestone, Elmore, and Blount Counties at 2.4%, and Autauga, Madison, Marshall, Morgan, and St. Clair Counties at 2.5%.  Counties with the highest unemployment rates are: Greene County at 5.9%, Perry County at 5.8%, and Wilcox County at 5.7%.

Major cities with the lowest unemployment rates are: Pelham at 2.1%, Vestavia Hills, Trussville, Alabaster, and Homewood at 2.2%, and Madison and Hoover at 2.3%.  Major cities with the highest unemployment rates are: Prichard at 6.6%, Selma at 4.9%, and Anniston at 4.1%.

“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.

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