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Alabama’s March unemployment rate holds steady at 2.7 percent

Employment and wages rose over the year, with Alabama setting a record average weekly wage as labor force participation also increased.

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Alabama Department of Workforce Secretary Greg Reed announced Friday that Alabama’s preliminary, seasonally adjusted March unemployment rate was 2.7 percent, unchanged from February. It was below the March 2025 rate of 3.0 percent.

The rate represented 65,474 unemployed people, compared with 64,830 in February and 70,862 in March 2025.

The number of people counted as employed increased by 11,027 over the year to 2,318,507. The civilian labor force also increased to 2,383,981, with 5,639 more people joining over the year.

Wage and salary employment increased by 11,200 over the year to 2,198,100, with gains in leisure and hospitality, private education and health services, and professional and business services, among others.

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

Average weekly wages in Alabama increased by $71.64 over the year to a record high of $1,178.60.

Counties with the lowest unemployment rates were Shelby County at 2.2 percent, Elmore County at 2.3 percent, and St. Clair, Morgan, Marshall, Madison, Limestone, Lee, Chilton and Blount counties at 2.4 percent.

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Counties with the highest unemployment rates were Perry County at 6.5 percent, Monroe County at 6.1 percent and Greene County at 6.0 percent.

Major cities with the lowest unemployment rates were Trussville and Pelham at 2.0 percent, Hoover at 2.1 percent, and Vestavia Hills, Madison, Homewood and Alabaster at 2.2 percent.

Major cities with the highest unemployment rates were Prichard at 6.0 percent, Selma at 4.9 percent and Bessemer at 4.3 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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