Alabama Department of Workforce Secretary Greg Reed announced Monday that Alabama’s preliminary, seasonally adjusted unemployment rate for May was 3 percent, up from 2.8 percent in April 2026 and above the May 2025 rate of 2.9 percent.
The rate represents 72,082 unemployed people, compared with 67,102 in April and 68,517 in May 2025.
The percentage of prime-age workers participating in the labor force was 79.6 percent. Prime-age workers are those ages 25 to 54.
The number of people counted as employed decreased by 4,426 over the year to 2,302,424. The civilian labor force measured 2,374,506 in May.
Over the year, wage and salary employment increased by 15,200 to a record high of 2,219,000, with gains in the construction sector, up 5,800; the leisure and hospitality sector, up 4,700; and the government sector, up 4,300, among others.
“I think the real story is that wages continue to rise,” Reed said. “Not only have we reached a record-high statewide wage in 2026, but several industries are experiencing strong growth. 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.”
Average weekly wages increased by $72.01 over the year to $1,169.64. The following industries reached record-high wages in May:
- Construction wages increased by $63.56 over the year to $1,425.09.
- Professional and business services wages increased by $123.24 over the year to $1,506.59.
- Leisure and hospitality wages increased by $45.59 over the year to $477.04.
Counties with the lowest unemployment rates were Shelby County at 2.7 percent; Morgan and Elmore counties at 2.8 percent; and Marshall, Madison, Limestone, Chambers and Blount counties at 2.9 percent.
Counties with the highest unemployment rates were Greene and Monroe counties at 6.2 percent, Perry County at 6 percent and Wilcox County at 5.7 percent.
Major cities with the lowest unemployment rates were Pelham at 2.4 percent, Trussville at 2.5 percent and Vestavia Hills, Hoover and Alabaster at 2.6 percent.
Major cities with the highest unemployment rates were Prichard at 6 percent, Selma at 5.3 percent and Bessemer at 4.9 percent.
