MONTGOMERY – Alabama Department of Workforce Secretary Greg Reed announced today that Alabama’s labor force participation rate for February increased to 57.7%, up from 57.6% in January. The percentage of prime-age workers increased by one-tenth of a percentage point to 78.8% over the year. Prime-age workers are those aged 25-54 years.
“We’re seeing positive trends in our labor force participation rate,” said Reed. “Increases, even smaller ones, are pointing us in the right direction. Both the general labor force participation rate and the rate for prime age workers showed improvement. On top of that, more people are in the labor force than ever before, and more people are working than ever before. That’s great news in Alabama!”
Alabama’s preliminary, seasonally adjusted unemployment rate is 3.3%, unchanged from January 2025’s rate, and up from February 2024’s rate of 2.9%. The rate represents 77,813 unemployed persons, compared to 78,249 in January and 67,091 in February 2024.
The number of people counted as employed increased by 26,691 over the year to 2,290,880, a new record high. The civilian labor force also increased to 2,368,693, a new record high, with 37,413 more people joining over the year.
Over the year, wage and salary employment increased by 19,500 to 2,195,400, with gains in the private education and health services sector (+7,300), the government sector (+6,400), and the manufacturing sector (+4,700), among others. Over the month, wage and salary employment grew by 14,800, with gains in the professional and business services sector (+3,400), the private education and health services sector (+3,400), and the manufacturing sector (+2,800), among others.
“I’m also excited to report that Alabamians’ paychecks are growing,” continued Reed. “Average weekly wages increased by nearly $80 a week since last year, representing a 7.7% increase, which is also a new record high.”
Total private average weekly wages increased to $1,110.89 in February, representing an increase of $45.52 over the month, and an increase of $79.68 over the year.
Counties with the lowest unemployment rates are: Shelby County at 2.7%, St. Clair County at 2.8%, Elmore County, Limestone County, Madison County, Morgan County, and Marshall County all at 2.9%. Counties with the highest unemployment rates are: Greene County at 8.3%, Perry County at 6.8%, and Wilcox County at 6.4.
Major cities with the lowest unemployment rates are: Trussville at 2.4%, Hoover, Homewood and Pelham all at 2.5% and Vestavia Hills at 2.6%. Major cities with the highest unemployment rates are: Prichard at 7.1%, Selma at 5.8%, and Anniston at 5.0%.
Media Release/Alabama Department of Workforce
