Alabama’s prime-age labor force participation rate held steady in August at 79.5%. Prime-age workers are those aged 25-54 years.
Over the year, wage and salary employment increased by 22,100 to 2,216,200, with gains in the leisure and hospitality sector (+11,100), the professional and business services sector (+6,000), and the private education and health services sector (+5,100), among others.
Alabama’s preliminary, seasonally adjusted unemployment rate is 3.4%, unchanged from July 2026’s rate, and above August 2025’s rate of 2.8%. The rate represents 80,567 unemployed persons, compared to 79,322 in July and 66,290 in August 2025.
The number of people counted as employed decreased by 30,420 over the year to 2,282,055. The civilian labor force also decreased to 2,362,622, with 16,143 fewer people joining over the year.
Counties with the lowest unemployment rates are: Shelby and Chambers Counties at 2.8%, Morgan, Marshall, Limestone, and Blount Counties at 2.9%, and Madison and Elmore Counties at 3.0%. Counties with the highest unemployment rates are: Perry County at 7.0%, Greene County at 6.8%, and Monroe County at 6.6%.
Major cities with the lowest unemployment rates are: Vestavia Hills at 2.6%, Trussville, Pelham, Madison, Homewood, and Alabaster at 2.7%, and Fairhope at 2.8%. Major cities with the highest unemployment rates are: Prichard at 7.3%, Selma at 6.1%, and Bessemer at 5.1%.