Alabama’s unemployment rate ticked up to 3.0% in May, but the state continued to post record employment numbers and rising wages across several key industries, according to data released Monday by the Alabama Department of Workforce.
The preliminary, seasonally adjusted unemployment rate increased from 2.8% in April and was slightly above the 2.9% rate recorded in May 2025. The rate represents 72,082 unemployed Alabamians, compared to 67,102 in April and 68,517 one year ago.
Despite the increase, Alabama reached a new record high for wage and salary employment, with 2.219 million jobs statewide. Employment grew by 15,200 positions over the year, led by gains in construction, leisure and hospitality, and government.
Construction added 5,800 jobs over the year, while leisure and hospitality gained 4,700 jobs and government employment increased by 4,300 positions.
Alabama Department of Workforce Secretary Greg Reed said wage growth remains one of the state’s strongest economic indicators.
“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.
Several industries posted record-high wage levels in May. Construction wages rose to $1,425.09 per week, an increase of $63.56 from a year earlier. Professional and business services reached $1,506.59 per week, up $123.24 year-over-year. Leisure and hospitality wages climbed to $477.04 per week, an increase of $45.59.
The state’s civilian labor force totaled 2.37 million workers in May, while the number of employed residents stood at 2.3 million. The labor force participation rate among prime-age workers, defined as those ages 25 to 54, measured 79.6%.
Among counties, Shelby County posted the state’s lowest unemployment rate at 2.7%, followed by Morgan and Elmore counties at 2.8%. Marshall, Madison, Limestone, Chambers and Blount counties each recorded unemployment rates of 2.9%.
Greene and Monroe counties had the state’s highest unemployment rates at 6.2%, followed by Perry County at 6.0% and Wilcox County at 5.7%.
Among Alabama’s larger cities, Pelham reported the lowest unemployment rate at 2.4%, followed by Trussville at 2.5% and Vestavia Hills, Hoover and Alabaster at 2.6%.
Prichard recorded the highest unemployment rate among major cities at 6.0%, followed by Selma at 5.3% and Bessemer at 4.9%.
The employment figures are based on data collected through the Bureau of Labor Statistics’ establishment survey, which measures payroll employment, and the Current Population Survey, which tracks workforce participation and unemployment.
