Alabama workers saw average weekly wages climb to a record high in August, while the state’s unemployment rate held steady at 3.4%, according to new data released by the Alabama Department of Workforce.

Average weekly wages reached $1,187.71, an increase of $72.61 from a year ago.

“Alabama families are bringing home better salaries to improve their families,” Workforce Secretary Greg Reed said. “We are continuing to add jobs statewide, which shows us that employers are continuing to hire and create opportunities for Alabama workers.”

Wage and salary employment increased by 22,100 jobs over the year to 2,216,200. Leisure and hospitality posted the largest gain with 11,100 additional jobs, followed by professional and business services with 6,000 and private education and health services with 5,100.

Alabama’s prime-age labor force participation rate, which measures participation among people ages 25 to 54, held steady at 79.5% in August. Of those not counted in the state’s labor force participation rate, 61.8% were 55 or older.

The state’s seasonally adjusted unemployment rate remained unchanged from July at 3.4%, but was higher than the 2.8% recorded in August 2025.

The number of unemployed Alabamians rose to 80,567, compared with 79,322 in July and 66,290 a year ago.

At the same time, the number of people counted as employed fell by 30,420 over the year to 2,282,055. Alabama’s civilian labor force declined by 16,143 over the same period to 2,362,622.

North Alabama counties among state’s lowest

Several North Alabama counties posted some of the lowest unemployment rates in the state.

Morgan, Marshall and Limestone counties each recorded a 2.9% unemployment rate in August, trailing only Shelby and Chambers counties at 2.8%. Madison County was at 3%.

Among major cities, Madison’s 2.7% unemployment rate tied with Trussville, Pelham, Homewood and Alabaster for the second-lowest in Alabama. Vestavia Hills had the lowest rate at 2.6%.

At the other end of the state rankings, Perry County recorded the highest county unemployment rate at 7%, followed by Greene County at 6.8% and Monroe County at 6.6%.

Prichard had the highest unemployment rate among major cities at 7.3%, followed by Selma at 6.1% and Bessemer at 5.1%.

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