State Sets New Record High Wage

News Release

For Immediate Release: May 1, 2026

Alabama's March Unemployment Rate Holds Steady at 2.7%

State Sets New Record High Wage

MONTGOMERY - Alabama Department of Workforce Secretary Greg Reed announced today that Alabama's preliminary, seasonally adjusted March unemployment rate is 2.7%, unchanged from February's rate. It is below March 2025's rate of 3.0%.  The rate represents 65,474 unemployed persons, compared to 64,830 in February and 70,862 in March 2025.

The number of people counted as employed increased by 11,027 over the year to 2,318,507. The civilian labor force also increased to 2,383,981, with 5,639 more people joining over the year.

Over the year, wage and salary employment increased by 11,200 to 2,198,100, with gains in the leisure and hospitality sector (+5,000), the private education and health services sector (+4,600), and the professional and business services sector (+3,300), among others.

"Wages in Alabama continue to rise and to represent some of the highest year over year increases in the nation," said Reed. "Our commitment to business and industry means that we will continue working to lead quality, high-paying jobs to our state. These increases in wages are reflecting that commitment and our dedication to creating the best workforce in the country."

Average weekly wages in Alabama increased by $71.64 over the year, to a new record high of $1,178.60.

Counties with the lowest unemployment rates are: Shelby County at 2.2%, Elmore County at 2.3%, and St. Clair, Morgan, Marshall, Madison, Limestone, Lee, Chilton, and Blount Counties at 2.4%.  Counties with the highest unemployment rates are: Perry County at 6.5%, Monroe County at 6.1%, and Greene County at 6.0%.

Major cities with the lowest unemployment rates are: Trussville and Pelham at 2.0%, Hoover at 2.1%, and Vestavia Hills, Madison, Homewood, and Alabaster at 2.2%.  Major cities with the highest unemployment rates are: Prichard at 6.0%, Selma 4.9%, and Bessemer at 4.3%.

"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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