Alabama’s average weekly wages reached a new record high of $1,187.71 in August, according to preliminary data from the Alabama Department of Workforce. This represents a 6.5% increase over the year, outpacing the 3.4% inflation rate recorded by the U.S. Bureau of Labor Statistics for the same period.
Despite the growth in earnings, the state’s labor metrics showed little movement. The seasonally adjusted unemployment rate held at 3.4% in August, consistent with July figures but higher than the 2.8% recorded in August 2023. The total number of unemployed Alabamians reached 80,567, significantly higher than the 66,290 reported one year ago.
Labor force participation remains a concern for state officials. In August, the participation rate was 56.8%, a slight decline from 56.9% in July and down from 57.5% in August 2023. This remains nearly 5 percentage points below the national average of 61.6%. The state’s prime-age labor force participation—tracking individuals aged 25 to 54—remained stagnant at 79.5%.
“Alabama families are bringing home better salaries to improve their families,” said Alabama Secretary of Workforce Greg Reed. “We are continuing to add jobs statewide, which shows us that employers are continuing to hire and create opportunities for Alabama workers.”
Employment growth was concentrated in specific sectors, with payroll employment increasing by 5,800 to 2,216,200. Key gains were reported in leisure and hospitality (+11,100), professional and business services (+6,000), and private education and health services (+5,100).