Alabama’s preliminary, seasonally adjusted August unemployment rate is 2.9%, down from July 2025’s rate of 3.0%. August’s rate is lower than August 2024’s rate of 3.1%. The rate represents 68,191 unemployed persons, compared to 72,473 in July and 74,115 in August 2024.

The number of people counted as employed increased by 30,242 over the year to 2,310,036. The civilian labor force also increased over the year to 2,378,227, with 24,318 more people joining over the year.

Over the year, wage and salary employment increased by 15,400 to 2,205,700, with gains in the private education and health services sector (+5,900), the government sector (+4,000), and the manufacturing sector (+2,900), among others.

The labor force participation rate for August dropped slightly to 57.7%. The percentage of prime-age workers decreased by one-tenth of a percentage point to 78.3% over the month. Prime-age workers are those aged 25-54 years.

Counties with the lowest unemployment rates are: Shelby, Elmore, and Blount Counties at 2.1%, St. Clair, Morgan, Marshall, Madison, Limestone, DeKalb, and Autauga Counties at 2.2%, and Cleburne and Baldwin Counties at 2.3%. Counties with the highest unemployment rates are: Perry County at 5.9%, Greene County at 5.7%, and Wilcox County at 5.6%.

Major cities with the lowest unemployment rates are: Vestavia Hills at 1.8%, Pelham at 1.9%, and Madison, Hoover, Homewood, and Alabaster at 2.0%. Major cities with the highest unemployment rates are: Prichard at 6.2%, Selma at 4.8%, and Bessemer, Anniston, and Mobile at 3.7%.