Alabama’s unemployment rate dropped to 2.9% in August, but the state’s workforce participation rate dropped slightly, too.
Average weekly wages rose to $1,117.54, its second highest level ever, the Alabama Department of Workforce said Friday. That figure represents a yearly increase of $72.63 per week.
“Wage growth is always something to celebrate and is a positive indicator of economic activity,” Secretary of Workforce Greg Reed said in a news release. “I’m optimistic that these wages will continue to increase. Increased wages help drive positive growth statewide, for both employers and employees.”
The unemployment rate measures those seeking work. The new unemployment rate represents 68,191 unemployed people searching for work, compared to 72,473 in July and 74,115 in August 2024, according to the department.
The number of people counted as employed increased by 30,342 over the year to 2,310,036. The civilian labor force also increased 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, health services, government and manufacturing sectors, among others.
Counties with the lowest unemployment rates in June were: 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%.
Major cities with the lowest unemployment rates were: Vestavia Hills at 1.8%, Pelham at 1.9%, and Madison, Hoover, Homewood, and Alabaster at 2.0%.
Alabama’s labor force participation rate dipped to 57.7% in August. The percentage of prime-age workers, those aged 25-54 years, decreased by one-tenth of a percentage point to 78.3%.
As the number of people searching for jobs reached historic lows, Alabama policymakers have focused on the labor rate and those people – now 42.3% – not participating in the state’s workforce.
Nationally, the participation rate was 62.3% in August.
The labor participation rate measures the number of working adults in a population.
