BIRMINGHAM, Ala. – Alabama employers reported a record 2.22 million jobs in June, even as the state’s unemployment rate rose and its labor force shrank from a year earlier, according to preliminary data from the Alabama Department of Workforce.
“We are adding jobs every month, and breaking records,” Workforce Secretary Greg Reed said in the department’s announcement. “This reflects continued employer confidence in Alabama’s economy and we are committed to building on that momentum.”
Wage-and-salary employment increased by 21,100 jobs over the year to 2,224,200, according to an employer survey conducted by the U.S. Bureau of Labor Statistics.
The biggest losses over the year were in transportation, warehousing and utilities, which lost 3,500 jobs, including 1,300 in truck transportation, and wholesale trade, which lost 2,500 jobs.
But while the overall number of payroll jobs rose, separate measures of Alabama’s workforce weakened.
The state’s preliminary, seasonally adjusted unemployment rate increased to 3.2%, up from 3% in May and 2.9% a year earlier. The national unemployment rate was 4.2% in June, down from 4.3% in May but up from 4.1% a year earlier.
The number of unemployed Alabamians rose to 76,641, compared with 72,046 in May and 67,728 a year earlier.
The number of Alabamians counted as employed fell by 12,759 over the year to about 2.29 million.
The record 2.22 million wage-and-salary jobs and the 2.29 million Alabamians counted as employed come from separate federal surveys.
The household survey counts employed people, while the employer survey counts payroll jobs. A person holding more than one job is counted once in the household survey, while each job appearing on a separate employer payroll is counted in the employer survey.
Labor force participation
Alabama’s civilian labor force, which includes people who are working or actively looking for work, declined by 3,846 people over the year to about 2.37 million.
The state’s overall labor force participation rate fell slightly to 57.1%, down from 57.2% in May and 57.5% in June 2025. The national rate was 61.5% in June.
The percentage of prime-age Alabamians participating in the labor force increased by 1.1 percentage points over the year, from 78.5% in June 2025 to 79.6% in June 2026.
The overall rate includes civilian residents age 16 and older who are working or actively looking for work, with no upper age limit. The prime-age rate is limited to people ages 25 to 54.
The Department of Workforce said 61.7% of Alabama residents who were not participating in the labor force were age 55 or older.
Local unemployment
Unemployment rates varied widely across the state.
Shelby and Chambers counties had the lowest unemployment rates at 3.2%, followed by Morgan, Limestone, Elmore and Blount counties at 3.3%.
Perry County had the state’s highest unemployment rate at 7.7%, followed by Greene and Monroe counties at 6.9% and Wilcox County at 6.4%.
Among major cities, Pelham had the lowest unemployment rate at 2.9%. Vestavia Hills and Trussville followed at 3%, while Madison, Hoover and Alabaster recorded rates of 3.1%.
Prichard had the highest rate among major cities at 7%, followed by Selma at 6% and Anniston at 5.3%.
