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Alabama’s labor force participation rate remains unchanged at 57 percent

Alabama’s preliminary, seasonally adjusted July unemployment rate dropped to a new record low of 2.1 percent.


Alabama Department of Labor Secretary Fitzgerald Washington announced today that Alabama’s Labor Force Participation Rate (LFPR) remained unchanged in July 2023 at 57.0 percent. This rate is also unchanged from July 2022.

The “prime-age” participation rate, which measures the labor force participation for individuals aged 25-54 is 77.8 percent in Alabama. 

Washington also announced that Alabama’s preliminary, seasonally adjusted July unemployment rate dropped to a new record low of 2.1 percent. July’s rate is below June 2023’s rate of 2.2 percent, and well below July 2022’s rate of 2.6 percent. The rate represents 48,834 unemployed persons, a new record low, compared to 50,377 in June and 59,409 in July 2022.

The number of people counted as employed increased by 28,382 over the year to a new record high of 2,258,166. The civilian labor force also reached a new record high of 2,307,000, with 17,807 more people joining the labor force over the year.

“Alabama continues to set economic records,” said Alabama Department of Labor Secretary Fitzgerald Washington. “Not only did we maintain our streak of setting new employment records, we also saw yet another decrease in our unemployment rate, bringing us to a new record low of 2.1 percent.”

A map of Alabama unemployment rates.

Over the year, wage and salary employment increased by 38,600 to 2,151,200 with gains in the leisure and hospitality sector (+9,800), the private education and health services sector (+7,800), and the government sector (+6,700), among others.

“Another bright spot to note this month is the recovery of the leisure and hospitality sector, which was hit especially hard by the pandemic,” continued Washington. “In July, this sector came within 300 workers of reaching its previous (and pre-pandemic) record high of 213,700 workers. That’s certainly an amazing turnaround in that industry!”

The leisure and hospitality industry recorded 213,400 workers in July 2023. Its all-time record high was 213,700 in June 2019.

All 67 counties experienced a stable or decrease in their unemployment rate both over the month and over the year.

Counties with the lowest unemployment rates are: Shelby County at 1.7 percent, Morgan County at 1.8 percent, and Madison, Limestone, and Cullman Counties at 1.9 percent. Counties with the highest unemployment rates are: Wilcox County at 6.7 percent, Dallas County at 5.5 percent, and Perry County at 5.4 percent.

Major cities with the lowest unemployment rates are: Trussville and Vestavia Hills at 1.5 percent, Homewood and Madison at 1.6 percent, and Alabaster and Hoover at 1.7 percent. Major cities with the highest unemployment rates are: Selma at 6.4 percent, Prichard at 4.6 percent, and Bessemer at 3.5 percent.

The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

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