On Thursday, Governor Kay Ivey announced the official launch of the new Alabama Department of Workforce at a kickoff event on the steps of the State Capitol in Montgomery. The event featured industry leaders, education partners, government officials and community representatives from across the state as they celebrated the consolidation of Alabama’s workforce development efforts.
“Alabama’s workforce is our greatest competitive advantage,” Gov. Ivey stated. “This unified approach connects individual career advancement to statewide prosperity, ensuring that our human capital drives continued economic growth across all communities.”
The new department is effectively a rebranding of the Alabama Department of Labor as a result of the Alabama Workforce Transformation Act, which Ivey signed into law during the 2024 Regular Session. The goal of the act is to streamline the state’s workforce development efforts, in part by consolidating previously fragmented workforce programs under the single banner of ADOW.
The “new” department will be headed by Secretary Greg Reed, who served as Ivey’s senior advisor to Workforce Transformation during the department’s transitionary period and previously spent fourteen years in the Alabama Senate representing Senate District 5. Reed sponsored numerous pieces of legislation focusing on workforce transformation and economic development during his time as a state senator.
At Thursday’s event, Reed detailed how he plans to leverage ADOW to improve workforce development across the state by increasing employment and training opportunities at the community level.
“We’re not just fixing problems—we’re building Alabama’s competitive future,” said Secretary Reed. “Alabama’s greatest resource is its people, and when they thrive, we all rise. This Department represents our commitment to meeting every Alabamian where they are and guiding them to where they want to be.”
“We’re meeting people where they are—by making opportunities accessible for all through their own community connections,” Reed added. “The Department will leverage career centers as local touchpoints, community-based outreach hubs and digital workforce matching systems with tele-case management to serve all counties effectively.”
Reed and ADOW will also be tasked with addressing Alabama’s notorious workforce participation paradox, with the state experiencing a low unemployment rate of 2.9 percent while simultaneously having one of the nation’s lowest workforce participation rates at 57.8 percent.
“Of particular focus will be Alabama’s young, disconnected workers aged 20-29 facing the ’26 cliff’ when they lose healthcare coverage and independence support,” the governor’s office stated.
Officials added that while the department will look to implement cutting-edge workforce development technologies–such as real-time labor market analytics, virtual training platforms and workforce matching systems–it will also remain committed to “prioritizing personal relationships through community partnerships and trusted local voices.”
“[ADOW] represents the most ambitious workforce development initiative Alabama has undertaken,” Reed stated. “We’re creating a foundation for lasting growth that benefits every community and ensures no Alabamian navigates their career journey alone.”
