Alabama Sees Continued Job Growth and Rising Wages in July Economic Data

News Release

For Immediate Release: August 21, 2026

Alabama Sees Continued Job Growth and Rising Wages in July Economic Data

MONTGOMERY - Alabama Department of Workforce Secretary Greg Reed announced today that wage and salary employment increased by 20,400 over the year to 2,209,500, with gains in the leisure and hospitality sector (+10,600), the private education and health services sector (+6,400), and the government sector (+5,400), among others.

Additionally, two sectors recognized record high weekly wages in July: the construction sector ($1,432.21) and the manufacturing sector ($1,389.75). This tied with the record set in April 2026.

The private education and health services sector, which includes medical workers, rose to a new record high of 269,000, with 6,400 more jobs added over the year. Nursing and other health care jobs have remained among the most high-demand positions in the state.

"It's great to continue to see positive growth in our jobs numbers, particularly when one of our most in-demand and needed professions, nursing, is showing such a strong increase," said Reed. "Wage growth in two of our highest paid sectors, construction and manufacturing, is also a positive economic development. We will continue our work to ensure that Alabamians have access to well-paying, high-growth positions so that they can achieve greater financial stability for themselves and their families."

Alabama's preliminary, seasonally adjusted July unemployment rate is 3.4%, up from June 2026's rate of 3.2%. July's rate is above July 2025's rate of 2.8%. The rate represents 79,345 unemployed people, compared to 76,589 in June and 66,983 in July 2025.

The number of people counted as employed decreased by 22,283 over the year to 2,286,389. The civilian labor force also decreased to 2,365,734, with 9,921 fewer people joining over the year.

Alabama's labor force participation rate for July is 56.9 %. The percentage of prime-age workers measured 79.5%. Prime-age workers are those aged 25-54 years.

61.7% of those who are not being counted in the workforce participation rate are age 55 years and older.

Counties with the lowest unemployment rates are: Shelby County at 2.9%, Morgan, Limestone, Chambers, and Blount Counties at 3.0%, and Marshall and Elmore Counties at 3.1%. Counties with the highest unemployment rates are: Perry County at 7.1%, Greene County at 6.7%, and Monroe County at 6.5%.

Major cities with the lowest unemployment rates are: Trussville at 2.7%, Vestavia Hills at 2.8%, and Pelham, Madison, Hoover, and Alabaster at 2.9%. Major cities with the highest unemployment rates are: Prichard at 6.9%, Selma at 5.8%, and Bessemer at 5.2%.

"Seasonal adjustment" refers to BLS's practice of anticipating certain trends in the labor force, such as hiring during the holidays or the surge in the labor force when students graduate in the spring, and removing their effects to the civilian labor force.

The Current Population (CPS), or the household survey, is conducted by the Census Bureau and identifies members of the work force and measures how many people are working or looking for work.

The establishment survey, which is conducted by the Bureau of Labor Statistics (BLS), a division of the U.S. Department of Labor, surveys employers to measure how many jobs are in the economy. This is also referred to as wage and salary employment.

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Members of the media seeking more information should contact Communications Director Tara Hutchison