Alabama Unemployment Holds Steady as Wages Hit Record High

Alabama’s unemployment rate remained unchanged in March, while average weekly wages climbed to a new record high, according to new data released by the Alabama Department of Workforce.

The state’s seasonally adjusted unemployment rate held steady at 2.7% in March 2026, matching February’s figure and improving from 3.0% recorded in March 2025. State officials said the latest numbers reflect continued workforce growth and strong demand across several key industries.

Employment and Labor Force Continue to Grow

According to the report, Alabama recorded 65,474 unemployed individuals in March, slightly higher than February’s total of 64,830 but lower than the 70,862 unemployed people counted one year ago.

At the same time, the number of employed residents increased by 11,027 over the year, bringing total employment to 2,318,507. Alabama’s civilian labor force also expanded, reaching 2,383,981 people — an increase of 5,639 workers compared to March 2025.

The data suggests that more Alabamians are either working or actively participating in the labor market, a sign economists often associate with broader economic confidence and business expansion.

Record High Wages Highlight Tight Labor Market

One of the most notable findings in the report was Alabama’s new record high average weekly wage. State officials said average weekly earnings rose by $71.64 over the year to $1,178.60.

Alabama Department of Workforce Secretary Greg Reed said the state’s focus on attracting employers and expanding workforce opportunities is contributing to wage growth.

“Wages in Alabama continue to rise and to represent some of the highest year over year increases in the nation,” Reed said in the release. “Our commitment to business and industry means that we will continue working to lead quality, high-paying jobs to our state.”

The wage increases come as many employers nationwide continue competing for workers in industries ranging from healthcare and hospitality to skilled trades and professional services.

Leisure, Healthcare, and Business Services Lead Job Gains

The report showed wage and salary employment increased by 11,200 jobs over the year, bringing total payroll employment to 2,198,100.

Several sectors posted notable gains, including leisure and hospitality, which added 5,000 jobs over the year. Private education and health services added 4,600 jobs, while professional and business services grew by 3,300 positions.

Those gains reflect broader national trends that have seen healthcare staffing needs remain elevated while hospitality and tourism industries continue rebuilding and expanding following years of workforce challenges.

Regional Differences Persist Across the State

While statewide unemployment remained low, labor market conditions continued to vary by region.

Shelby County posted the state’s lowest unemployment rate at 2.2%, followed by Elmore County at 2.3%. Several other counties — including Madison, Lee, Limestone, and Morgan — recorded rates of 2.4%.

Meanwhile, Perry County had the state’s highest unemployment rate at 6.5%, followed by Monroe County at 6.1% and Greene County at 6.0%.

Among Alabama’s larger cities, Trussville and Pelham recorded the lowest unemployment rates at 2.0%, while Prichard posted the highest at 6.0%.

How the Numbers Are Measured

The unemployment rate is calculated using data from the Current Population Survey, conducted by the U.S. Census Bureau, which tracks the number of people working or actively seeking employment.

Job totals are measured separately through the Bureau of Labor Statistics’ establishment survey, which gathers payroll data directly from employers.

The report also uses “seasonal adjustment,” a statistical method designed to account for predictable workforce fluctuations, such as holiday hiring or changes tied to school graduation cycles.