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Alabama’s labor force participation rates hit record high

MONTGOMERY – Some good news came out of the state capital late last week, and it didn’t involve weather or related events.

Fitzgerald Washington, secretary of the Alabama Department of Labor, released these positive statistics Friday: December’s workforce increased to 57.2 percent, and the percentage of prime-age workers (25-54 years old) increased by four-tenths of a percentage point to 78.5 percent over the year.

Madison scored high among major cities with lowest unemployment rates. The counties of Cullman, Limestone, Marshall, Morgan also performed well. 

“As we continue to see growth in our labor force participation rate, with our prime-age worker participation rate increasing by nearly a half of a percentage point over the year, we will continue our efforts to reach more underutilized workforce populations,” Washington said. “We know that the labor force participation rate for the state is tied to its demographic population, so we must work together to encourage those who traditionally may not be heavily recruited by employers to work with us to get them in the workforce.”

Counties with the lowest unemployment rates are:

  • Shelby County (1.9 percent)
  • Morgan, Marshall, and Cullman Counties (2.1)
  • Madison, Limestone, Elmore, Chilton, and Autauga Counties (2.2)

Counties with the highest unemployment rates are: 

  • Wilcox County (9.3)
  • Greene County (6.3)
  • Dallas County (5.8)

Major cities with the lowest unemployment rates are: 

  • Vestavia Hills (1.7)
  • Alabaster, Homewood, and Madison (1.8)
  • Hoover, Northport, and Trussville (1.9)

Major cities with the highest unemployment rates are:

  • Selma (7.2)
  • Prichard (5.5)
  • Bessemer (4.3)

Alabama’s preliminary, seasonally adjusted December unemployment rate is 2.6 percent, up slightly from November’s rate of 2.4 percent. December’s rate is equal to December 2022’s rate of 2.6 percent. The rate represents 59,454 unemployed persons, compared to 55,462 in November and 59,986 in December 2022.

According to the department, the number of people counted as employed increased by 40,194 over the year to a record high of 2,264,098. The civilian labor force also increased to a new record high of 2,323,552, with 39,662 more people joining over the year.

Furthermore, over the year, wage and salary employment increased by 38,100, reaching a record high of 2,184,500, with gains in the private education and health services sector (+10,700), the government sector (+6,900), and the trade, transportation, and utilities sector (+4,600), among others.

Wage and salary employment increased in December by 300. Monthly gains were seen in the trade, transportation, and utilities sector (+3,600), the manufacturing sector (+2,800), and the financial activities sector (+1,300), among others. 

“It’s always exciting to be able to announce that our weekly wages have reached a new record high,” Washington said. “Two industries continue to stand out with their growth, the construction and the trade, transportation, and utilities industries. This month they reached new record highs, and the trade, transportation, and utilities industry also saw a new record high employment level.”

The total private average weekly wage increased in December by $32.08 over the year to a record high of $1,035. Average weekly wages in both the construction and trade, transportation, and utilities sectors reached new record highs, with construction wages increasing by $113.92 per week (over the year) and trade, transportation, and utilities wages increasing by $21.44 weekly (over the year).

The trade, transportation, and utilities sector and the financial activities sector saw record high employment in December.

 

 

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