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Alabama’s Labor Force Participation Rate Remains Unchanged at 57.4%

March 11, 2024

Alabama’s Labor Force Participation Rate Remains Unchanged at 57.4%

News Release

For Immediate Release: March 11, 2024

Alabama’s Labor Force Participation Rate Remains Unchanged at 57.4%

More than 38,000 Jobs Added Over the Year

MONTGOMERY – Alabama Department of Labor Secretary Fitzgerald Washington announced today that Alabama’s labor force participation rate for January 2024 remained unchanged at 57.4%. The percentage of prime-age workers increased by one-tenth of a percentage point to 78.6% over the month. Over the year, this number increased nearly an entire percentage point from 77.7%. Prime-age workers are those aged 25-54 years.

“We are continuing to see those prime-age workers growing in our labor force,” said Washington. “More than three out of every four prime-age workers are holding down a job. This growth will contribute to the overall health of Alabama’s economy.”

Alabama’s preliminary, seasonally adjusted unemployment rate is 2.9%, up slightly from December 2023’s revised rate of 2.8%. January’s rate is above January 2023’s rate of 2.4%.  The rate represents 66,591 unemployed persons, compared to 64,101 in December 2023 and 53,887 in January 2023.

The number of people counted as employed increased by 31,157 over the year to 2,261,270. The civilian labor force also increased to 2,327,861, with 43,861 more people joining over the year.

Over the year, wage and salary employment increased by 38,300 to 2,166,500, with gains in the government sector (+10,400), the private education and health services sector (+9,100), and the manufacturing sector (+5,500), among others.

“We saw over the year job growth of more than 38,000,” continued Washington. “This means that employers are continuing to create new jobs and are filling those positions with hard working Alabamians. We look forward to more positive growth during 2024.”

Counties with the lowest unemployment rates are:  Shelby County at 2.5%, Morgan County at 2.6%, and Marshall, Limestone, Cullman, and Autauga Counties at 2.7%.  Counties with the highest unemployment rates are: Wilcox County at 10.5%, Greene County at 7.3%, and Clarke County at 7.1%.

Major cities with the lowest unemployment rates are: Homewood at 2.0%, Vestavia Hills at 2.1%, and Alabaster and Madison at 2.3%.  Major cities with the highest unemployment rates are: Selma at 8.2%, Prichard at 6.6%, and Bessemer and Gadsden at 5.1%.

 

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Members of the media seeking more information should contact Communications Director Tara Hutchison.

 

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Seasonal adjustment” refers to BLS’s practice of anticipating certain trends in the labor force, such as hiring during the holidays or the surge in the labor force when students graduate in the spring, and removing their effects to the civilian labor force. 

The Current Population (CPS), or the household survey, is conducted by the Census Bureau and identifies members of the work force and measures how many people are working or looking for work.

The establishment survey, which is conducted by the Bureau of Labor Statistics (BLS), a division of the U.S. Department of Labor, surveys employers to measure how many jobs are in the economy.  This is also referred to as wage and salary employment.