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State labor participation rate holds at 57.5% in September, unemployment ticks up

Alabama’s labor force participation rate continued to hold at 57.5% in September, where it’s been for several months.

And while the number of “prime-age” workers has increased 1.3 percentage points in the last year, it did tick down .1 percentage point in September to 79.3%, the Alabama Department of Labor said Friday.

Prime-age workers are aged 25 to 54.

“ … We are continuing to see yearly growth in the number of prime age workers who are participating in the labor force,” Marty Redden, the newly appointed Alabama labor secretary, said Friday in a written statement. “Nearly 80% of these people are working or looking for work. They are a vital part of building Alabama’s workforce. We’re also seeing major growth in the total number of people joining the workforce and finding employment.”

Alabama’s participation rate continues to lag the national rate of 62.7%.

Alabama’s preliminary, seasonally adjusted unemployment rate is 2.9%, up from August’s revised rate of 2.8% and September 2023’s rate of 2.7%.

The new rate represents 67,405 unemployed people, compared to 66,621 in August and 61,658 in September 2023.

The number of people counted as employed increased by 18,391 over the year to 2,278,613, a new record high, the statement from labor said.

The civilian labor force also increased to a new record high of 2,346,018, with 24,138 more people joining over the year.

Another increase: Total private average weekly wages hit a record high of $1,061.20 in September. This is an increase of $40.90 over the year, and $16.29 over the month.

“We are pleased to report that wages in Alabama are increasing to new record highs,” Redden said. “More money in peoples’ pockets means that workers are better able to provide for their families, our economy realizes additional benefits, and also allows us to remain competitive in attracting businesses to our state.”

Counties with the lowest unemployment were:  Shelby County, 2.3%; Madison, Marshall and Morgan counties, 2.5%; and Cherokee, Cleburne, Cullman, Limestone and St. Clair counties, 2.6%.  

Major cities with the lowest unemployment rates were: Homewood, Trussville, and Vestavia Hills, 2.2%, Alabaster and Hoover, 2.3%, and Madison and Northport, 2.4%.

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