Kay Ivey announces August unemployment rate still at a record low 2.6%

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Gov. Kay Ivey photo provided by the Governor's office.

Alabama Governor Kay Ivey announced on Friday that Alabama’s preliminary, seasonally adjusted August unemployment rate held steady at just 2.6 percent. August’s rate is well below August 2021’s rate of 3.3%. Ivey has focused on jobs and economic growth as well as improving Alabama’s infrastructure during her tenure as governor.

The number of unemployed in Alabama continues to drop as August’s rate represents 58,958 unemployed persons, a new record low, compared to 59,359 in July and 74,505 in August 2021.

“Alabama continues to maintain its record-setting recovery with this month’s numbers,” said Gov. Ivey. “All of our metrics continue to move in the right direction, and we’re seeing more and more people joining our labor force. This positive news displays that Alabamians are confident they can land a job. Opportunities are abound in Alabama, and we’re proud of our continued progress.”

The number of people counted as employed also reached a new record high, increasing by 67,881 over the year to 2,234,669. An increase in the civilian labor force in August also raised its level to a new record high, gaining 52,334 people over the year to total 2,293,627.

“We continue to add jobs to our economy at a good pace,” said Labor Secretary Fitzgerald Washington. “Right now, there are around two available jobs for every unemployed person.  Our construction industry is thriving, and growing construction employment generally tends to predict positive economic growth.”

Over the year, wage and salary employment increased by 36,800, with gains in the construction sector (+9,800), the education and health services sector (+9,300), and the trade, transportation, and utilities sector (+7,100), among others.

Total wage and salary employment increased in August by 1,500 from the month before.  Monthly gains were seen in the professional and business services sector (+3,100), the education and health services sector (+2,700), and the government sector (+2,300), among others.

All 67 counties saw their unemployment rates decline over the year, and all counties saw their unemployment rates hold steady or decline over the month of August.

The Alabama Counties with the lowest unemployment rates are Shelby County at 2.0%, Marshall and Cullman Counties at 2.2%, and Morgan, Limestone, Chilton, and Blount Counties at 2.3%. The Counties with the highest unemployment rates are Wilcox County at 10.0%, Lowndes County at 7.4%, and Perry County at 7.2%.

The major cities with the lowest unemployment rates are Vestavia Hills at 1.6%, Homewood and Trussville at 1.8%, and Alabaster and Hoover at 1.9%.  The major cities with the highest unemployment rates are Selma at 8.5%, Prichard at 6.5%, and Anniston at 4.6%.

The roaring economy combined with inflation is drawing more and more Americans back into the labor force. August’s labor force participation rate was 62.4% in August, which is up from 62.1% in July and up from 61.7% in August a year ago. Alabama’s labor force participation held steady over the course of the month at 57.2%. Nationally the unemployment rate rose to 3.7% in August from 3.5% in July.

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