Alabama’s overall labor participation rate increased slightly in October though the percentage of young people working ticked down.
The overall participation rate increased by one-tenth of a percentage point last month to 57.6%, Alabama Department of Labor Secretary Marty Redden said in a written statement. The percentage of prime-age workers decreased by two-tenths of a percentage point to 79.1% over the month. Year-over-year, the percentage of people ages 25 to 54 has increased by one percentage point.
“This month we experienced a slight increase in our labor force participation rate,” Redden said. “Any growth is always welcome news. Additionally, the year-over-year growth of prime age workers is also encouraging. Nearly 80% of those prime age workers are out there doing their jobs and providing for their families.”
The state still lags the national averages of 62.6% for overall participation and 83.5% for those prime age.
The seasonally adjusted unemployment rate in October was 2.9%, unchanged from September and slightly higher than October 2023’s 2.8%. The unemployment rate represents about 69,271 people who are actively looking for work; the labor participation rate captures those in the workforce, and conversely, those who aren’t.
The number of people counted as employed grew by 18,840 over the year to 2,280,863, a new record high, according to Labor.
Wage and salary employment increased by 7,600, from September with gains in the professional and business services sector, the government sector and the private education and health services sector, among others.
“While Alabama employers continue to add jobs at record high rates, we’re also seeing wage growth, which is beneficial to our entire economy,” Redden said. “We are currently supporting more jobs than ever before, and our hard-working citizens have seen their average weekly wages increase over the year by nearly $25 a week.”
Average weekly wages increased in the last year by $24.97 to $1,056.18.
Counties with the lowest unemployment rates in October were: Shelby, 2.4%; Marshall, 2.5%; and Madison and Morgan, 2.6%.
Cities with the lowest unemployment rates were: Homewood, Vestavia Hills, and Trussville, 2.2%; Alabaster and Hoover, 2.3%; and Madison, 2.4%.