Alabama’s labor participation rate, the number of adults engaged in the workforce, increased by one-tenth of a percentage point in December to 57.7% and is up three-tenths of a percentage point when compared to a year prior, the Alabama Department of Labor said this morning.
Meanwhile, the participation rate of workers ages 25 to 54, considered “prime age,” is 78.9%, up four-tenths of a percentage point for the year.
“It’s encouraging to see growth in our labor force participation rate in December, especially in the year-over-year comparison,” Labor Secretary Marty Redden said in a written statement. “We have a mission to increase the number of people in our workforce, and we are working hard to do just that. Our prime-age workers are continuing to do their part and are either working or joining the labor force.”
The state’s overall participation rate still trails a national average of 62.5%.
Alabama’s preliminary, seasonally adjusted unemployment rate was 3.3% in December up from 3.1% in November and 2.8% in December 2023. The rate represents 76,643 unemployed people seeking work, compared to 73,265 in November and 64,101 in December 2023.
The number of people counted as employed increased by 18,803 over the year to more than 2.28 million, according to labor. The civilian labor force also increased to more than 2.35 million, a new record high, with 31,345 more people joining over the year.
Average weekly wages reached a new record high, with the total private sector registering $1,094.21 a week. That’s an increase of $50.09 over the year.
Counties with the lowest unemployment rates in December were: Shelby, 2.4%; Morgan and Marshall, 2.6%; and Madison, Cullman , Chilton, and Cherokee, 2.7%.
Major cities with the lowest unemployment rates were: Homewood and Vestavia Hills, 2.1%; Alabaster, 2.3%; and Madison, 2.4%.