Alabama’s labor force participation rate among workers ages 25 to 54 rose to 79.6% in May, up from 78.7% a year earlier, even as the state’s unemployment rate increased to 3% and thebroader participation rate fell to 57.2%.
The preliminary, seasonally adjusted unemployment rate increased from 2.8% in April and was slightly higher than the 2.9% rate recorded in May 2025, according to the Alabama Department of Workforce.
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The number of unemployed Alabamians rose to 72,082, up from 67,102 in April and 68,517 a year earlier. The number of people counted as employed fell by 4,426 over the year to about 2.3 million.
Labor force participation offers another measure of workforce engagement.
The overall rate includes residents age 16 and older who are working or actively looking for work. The prime-age rate is limited to workers between age 25 and 54.
The Department of Workforce highlighted the prime-age rate in its monthly announcement. The agency has regularly reported both measures in previous releases, although the broader rate was not included in the announcement issued Monday.
Despite the increase in unemployment and decline in broader participation, wage-and-salary employment increased by 15,200 over the year to a record 2.22 million jobs.
The largest gains were in construction, which added 5,800 jobs; leisure and hospitality, which added 4,700; and government, which added 4,300.
Wages and ‘the real story’
Wages also continued to increase. Average weekly wages increased by $72.01 over the year to a record $1,169.64.
Workforce Secretary Greg Reed called rising wages “the real story,” saying record statewide earnings and growth in several industries were giving Alabama workers more financial security.
“Not only have we reached a record-high statewide wage in 2026, but several industries are experiencing strong growth,” Reed said in the release. “That means more money in the pockets of Alabama workers and more families with the ability to comfortably support themselves and plan for the future.”
Several sectors also reported record average weekly wages. Construction wages increased by $63.56 over the year to $1,425.09 per week. Professional and business services wages rose by $123.24 to $1,506.59, while leisure and hospitality wages increased by $45.59 to $477.04.
Unemployment rates varied widely across the state. Shelby County had the state’s lowest unemployment rate at 2.7%, followed by Morgan and Elmore counties at 2.8%.
At the other end of the range, Greene and Monroe counties had the highest unemployment rates at 6.2%, followed by Perry County at 6% and Wilcox County at 5.7%.
EDITOR’S NOTE — This story was written by Trisha Powell Crain and originally published by Alabama Daily News.
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