No improvement in Alabama's Labor Force Participation Rate still just 57.5%

On Friday, Alabama Department of Labor Secretary Fitzgerald Washington announced that Alabama's chronically low labor force participation rate for June was just 57.5%. Washington did point out that did amount to an increase of four-tenths of a percentage point from where we were a year ago in June 2023. The percentage of prime-age workers however did increased by 1.4 percentage points to 79.2% over the year. Prime-age workers are those aged 25-54 years.

"The number of prime age workers increased by more than one percentage point since last year," said Washington. "Combined with the growth in the civilian labor force, the growth in employment, and the growth in jobs, these numbers are all excellent indicators of Alabama's economic picture."

Alabama's preliminary, seasonally adjusted June unemployment rate is 2.9%, down from May 2024's revised rate of 3.0%. June's rate is still higher than June 2023's historically low rate of 2.3%. The rate represents 67,784 unemployed persons, which is down significantly from 70,668 in May; but up from the 53,412 in June 2023.

Unemployed for government purposes refers to someone without a job who is looking for work – as opposed to the much more common (in Alabama anyway) without a job and not making any effort to find one.

The number of people counted as employed increased by 20,417 over the year to a new record high of 2,270,227. The civilian labor force also increased to a new record high to 2,338,011, with 34,789 more people joining over the year.

Over the year, wage and salary employment increased by 47,500 to 2,218,400, also a new record high, with gains in the private education and health services sector (+11,900), the government sector (+8,900), and the manufacturing sector (+7,700), among others.

"We are continuing to see Alabama's employers adding jobs at a record pace," continued Washington. "Our economy is supporting more jobs than ever before. Additionally, our average weekly wages have increased to their second highest level ever."

The odd specter of having a growing economy and an extremely low pool of workers looking for a job means that employers have to compete to hire and retain competent workers, This leads to an upward pressure on wages.

Total private sector average weekly wages increased in June to $1,043.70, representing a yearly increase of $41.47. The highest average weekly wages were $1,044.12, recorded in December 2023.

The counties with the lowest unemployment rates are: Shelby and Morgan Counties at 2.3%, Marhsall and Cullman Counties at 2.4%, and Madison, Limestone, and Elmore Counties at 2.5%. Counties with the highest unemployment rates are: Wilcox County at 8.5%, Perry County at 6.8%, and Dallas County at 6.0%.

The major cities with the lowest unemployment rates are: Trussville and Vestavia Hills at 2.0%, Alabaster, Hoover, Homewood, and Madison at 2.2%, and Athens and Decatur at 2.4%. Major cities with the highest unemployment rates are: Selma at 7.1%, Prichard at 5.4%, and Bessemer at 4.0%.

Everyone who wants a job and is seeking a job has a job, but the really low labor force participation rate makes it difficult for the state to recruit new employers while at the same time contributes heavily to chronic poverty.

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