Alabama's Labor Force Participation Rate Increases to 57.7% in December

January 24, 2025 - MONTGOMERY – Alabama Department of Labor Secretary Marty Redden announced today that Alabama's labor force participation rate for December increased by one-tenth of a percentage point to 57.7%. Over the year, this percentage has increased by three-tenths of a percentage point. The percentage of prime-age workers remained steady over the month at 78.9%. Over the year, this number increased by four-tenths of a percentage point from 78.5%. Prime-age workers are those aged 25-54 years.

"It's encouraging to see growth in our labor force participation rate in December, especially in the year-over-year comparison." said Redden. "We have a mission to increase the number of people in our workforce, and we are working hard to do just that. Our prime age workers are continuing to do their part and are either working or joining the labor force."

Alabama's preliminary, seasonally adjusted December unemployment rate is 3.3%, up from November 2024's rate of 3.1%. December's rate is above December 2023's rate of 2.8%. The rate represents 76,643 unemployed people, compared to 73,265 in November and 64,101 in December 2023.

The number of people counted as employed increased by 18,803 over the year to 2,280,007. The civilian labor force also increased to 2,356,650, a new record high, with 31,345 more people joining over the year.

Average weekly wages increased to a new record high, with the total private sector registering $1,094.21 a week, which represents an increase of $50.09 over the year.

Several sectors also saw new record high weekly wages, including: trade, transportation, and utilities at $918.31, professional and business services at $1,395.37, and private education and health services at $1,047.85.

Over the year, wage and salary employment increased by 39,900 to 2,234,300, also a new record high, with gains in the private education and health services sector (+11,500), the leisure and hospitality sector (+7,800), and the government sector (+6,500), among others.

Counties with the lowest unemployment rates are: Shelby County at 2.4%, Morgan and Marshall Counties at 2.6%, and Madison, Cullman , Chilton, and Cherokee Counties at 2.7%. Counties with the highest unemployment rates are: Wilcox County at 8.5%, Clarke County at 6.8%, and Greene County at 6.6%.

Major cities with the lowest unemployment rates are: Homewood and Vestavia Hills at 2.1%, Alabaster at 2.3%, and Madison at 2.4%. Major cities with the highest unemployment rates are: Selma at 7.1%, Prichard at 5.8%, and Anniston and Gadsden at 4.8%.

Members of the media seeking more information should contact Communications Director Tara Hutchison.

"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.