Alabama’s overall labor force participation rate in January remained at 57.4% from December, but there was some growth in the number of young and middle-aged people working.
The percentage of prime-age workers, those 25 to 54, increased by one-tenth of a percentage point to 78.6% over the month. Over the year, this number increased nearly a percentage point from 77.7%, the Alabama Department of Labor said in a press release this morning.
“We are continuing to see those prime-age workers growing in our labor force,” Labor Secretary Fitzgerald Washington said. “More than three out of every four prime-age workers are holding down a job. This growth will contribute to the overall health of Alabama’s economy.”
The preliminary, seasonally adjusted unemployment rate in January increased slightly to 2.9%, from December 2023’s revised rate of 2.8%. January’s rate is above January 2023’s rate of 2.4%.
The rate represents 66,591 unemployed people, compared to 64,101 in December 2023 and 53,887 in January 2023, according to the labor department.
Alabama’s workforce participation rate remains below the national rate of 62.5%.
In the second half of the Legislature’s regular session, which resumes next week, lawmakers are expected to consider legislation to help get more people into the workforce. Proposals include tax credits to increase the availability of child care.
Over the year, wage and salary employment increased by 38,300 to 2,166,500, with the largest gains in the government, private education and health services, and the manufacturing sectors.
“We saw over the year job growth of more than 38,000,” Washington said. “This means that employers are continuing to create new jobs and are filling those positions with hard-working Alabamians. We look forward to more positive growth during 2024.”
Counties with the lowest unemployment rates in January were: Shelby, 2.5%; Morgan, 2.6%; and Marshall, Limestone, Cullman and Autauga, 2.7%.
Major cities with the lowest unemployment rates were: Homewood, 2%, Vestavia Hills, 2.1%; and Alabaster and Madison, 2.3%.