MONTGOMERY – Alabama Department of Workforce Secretary Greg Reed announced today that Alabama’s prime-age labor force participation rate increased to 79.5%, up from 78.4% a year ago. Prime-age workers are those aged 25-54 years.
“What these numbers show us is that the people who can and should be working, are working,” said Reed. “Nearly 80% of prime-age workers have jobs. Additionally, a lot of those who aren’t being counted are older adults, as Alabama has a larger retiree population. Ultimately, our mission is to ensure that every Alabamian who wants a job has a job, and we will continue working throughout the state to make that a reality.”
Of those not counted in the labor force participation rate, 61.7% are aged 55 or older.
Over the year, wage and salary employment increased by 24,300 to 2,218,800, with gains in the leisure and hospitality sector (+10,200), the private education and health services sector (+7,300), and the professional and business services sector (+6,800), among others.
Additionally, the private education and health services sector increased by 7,300 over the year to a new record high of 272,000.
Alabama’s preliminary, seasonally adjusted unemployment rate is 3.5%, up slightly from August 2026’s rate of 3.4%, and above September 2025’s rate of 2.8%. The rate represents
82,075 unemployed persons, compared to 80,550 in August and 65,692 in September 2025.
The number of people counted as employed decreased by 2,080 over the month to 2,279,937. The civilian labor force also decreased to 2,362,012, with 555 fewer people joining over the month.
Counties with the lowest unemployment rates are: Shelby, Limestone, and Chambers Counties at 3.0%, Morgan and Elmore Counties at 3.1%, and Madison and Blount Counties at 3.2%. Counties with the highest unemployment rates are: Perry County at 6.6%, Greene County at 6.5%, and Monroe County at 6.4%.
Major cities with the lowest unemployment rates are: Pelham at 2.6%, Vestavia Hills at 2.8%, and Trussville and Alabaster at 2.9%. Major cities with the highest unemployment rates are: Prichard at 7.0%, Selma at 5.8%, and Tuscaloosa at 5.0%.
Media Release/Alabama Department of Workforce
