Alabama’s February Unemployment Rate Holds Steady at 2.7%

News Release

For Immediate Release: April 17, 2026

Alabama's February 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 February unemployment rate is 2.7%, unchanged from January's rate. It is below February 2025's rate of 3.0%. The rate represents 64,831 unemployed persons, compared to 64,057 in January and 71,929 in February 2025.

The number of people counted as employed increased by 14,603 over the year to 2,321,473. The civilian labor force also increased to 2,386,304, with 7,505 more people joining over the year.

Over the month, wage and salary employment increased by 12,000 to 2,195,300, with gains in the leisure and hospitality sector (+3,600), the government sector (+3,300), and the private education and health services sector (+3,200), among others.

"Yet again, Alabama is adding jobs and people to the labor force," said Reed. "Employers are hiring, and wages are continuing to rise. In fact, last month, Alabama had the fourth largest wage increase in the country! These are all positive indicators for our economy."

Average weekly wages in Alabama increased by $62.71 over the year, to a new record high of $1,175.01. Last month, Alabama had the fourth highest wage increase in the country with a growth percentage of 8.0%.

Additionally, the following sectors also realized new record high wages: manufacturing ($1,384.33), trade, transportation, and utilities ($989.30), financial activities ($1,377.89), professional and business services ($1,467.02), and leisure and hospitality ($456.04).

Counties with the lowest unemployment rates are: Shelby County at 2.5%, Elmore County at 2.6%, and Limestone, Chambers, and Blount Counties at 2.7%. Counties with the highest unemployment rates are: Perry County at 7.1%, Monroe County at 6.6%, and Greene and Wilcox Counties at 6.5%.

Major cities with the lowest unemployment rates are: Pelham at 2.2%, Vestavia Hills at 2.3%, and Trussville, Hoover, and Alabaster at 2.4%. Major cities with the highest unemployment rates are: Prichard at 6.5%, Selma at 5.2%, and Anniston at 4.6%.

"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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