News Release

For Immediate Release: January 23, 2026

Alabama’s Unemployment Rate Holds Steady at 2.7%

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 December held steady at 2.7%. This is below December 2024’s rate of 3.3%.  The rate represents 64,150 unemployed persons, compared to 65,264 in November and 78,478 in December 2024.

“Alabama continues to lead the nation with one of the lowest unemployment rates in the country,” said 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.”

The number of people counted as employed increased by 35,819 over the year to 2,317,206, a new record high. The civilian labor force also increased to 2,381,356, with 21,491 more people joining over the year.

Over the year, wage and salary employment increased by 9,100 to 2,221,300, with gains in the leisure and hospitality sector (+6,700), the private education and health services sector (+4,900), and the construction sector (+3,400), among others.

“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.”  Wages in the construction sector increased over the month to a new record high of $1,421.56 weekly.

Counties with the lowest unemployment rates are:  Shelby and Elmore Counties at 1.8%, St. Clair, Morgan, Marshall, Madison, Limestone, Chambers, and Blount Counties at 1.9%, and Lee, Lawrence, DeKalb, Cleburne, Chilton, and Autauga Counties at 2.0%.  Counties with the highest unemployment rates are: Perry County at 5.1%, Monroe County at 4.8%, and Greene County at 4.7%.

Major cities with the lowest unemployment rates are: Trussville and Alabaster at 1.6%, Pelham and Hoover at 1.7%, and Vestavia Hills, Prattville, Madison, and Homewood at 1.8%.  Major cities with the highest unemployment rates are: Prichard at 4.7%, Selma at 3.3%, and Bessemer and Anniston at 3.2%.

“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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