Alabama added 24,300 jobs over the past year and saw an increase in workforce participation among prime-age workers, even as the state’s unemployment rate edged up to 3.5% in September.

The Alabama Department of Workforce released the latest employment figures, reporting that the state’s prime-age labor force participation rate reached 79.5%, up from 78.4% a year ago.

Prime-age workers are those between 25 and 54 years old.

“What these numbers show us is that the people who can and should be working, are working,” said Alabama Department of Workforce Secretary Greg Reed. “Nearly 80% of prime-age workers have jobs. Additionally, a lot of those who aren’t being counted are older adults, as Alabama has a larger retiree population.”

Reed said the department remains focused on connecting Alabamians with employment opportunities.

“Ultimately, our mission is to ensure that every Alabamian who wants a job has a job, and we will continue working throughout the state to make that a reality.”

According to the department, 61.7% of those outside the labor force are age 55 or older.

Alabama’s wage and salary employment increased by 24,300 jobs over the year to 2,218,800.

Several industries accounted for much of that growth:

• Leisure and hospitality: 10,200 additional jobs
• Private education and health services: 7,300 additional jobs
• Professional and business services: 6,800 additional jobs

Private education and health services employment reached a record 272,000 jobs.

Despite the annual job gains, Alabama’s preliminary, seasonally adjusted unemployment rate increased to 3.5% in September, compared to 3.4% in August and 2.8% in September 2025.

The number of unemployed Alabamians rose to 82,075, compared to 80,550 in August and 65,692 a year earlier.

The household survey also showed the number of employed Alabamians declining by 2,080 over the month to 2,279,937. The state’s civilian labor force decreased by 555 to 2,362,012.

North Alabama among state’s lowest unemployment rates

North Alabama continued to post some of the state’s lowest county unemployment rates in September.

Limestone County tied Shelby and Chambers counties for the lowest rate statewide at 3.0%.

Morgan County followed closely at 3.1%, while Madison County reported 3.2%.

Elsewhere in Alabama, Perry County recorded the highest unemployment rate at 6.6%, followed by Greene County at 6.5% and Monroe County at 6.4%.

Among major cities, Pelham had the lowest unemployment rate at 2.6%, followed by Vestavia Hills at 2.8% and Trussville and Alabaster at 2.9%.

Prichard recorded the highest city unemployment rate at 7.0%, followed by Selma at 5.8% and Tuscaloosa at 5.0%.

The department’s report uses two separate federal surveys to measure employment. The employer survey tracks wage and salary jobs, while the household survey measures the number of people employed or actively seeking work.

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