On Friday, Governor Kay Ivey announced that Alabama’s preliminary, seasonally adjusted February unemployment rate has dropped to 2.5%, tying the record low – also set during Ivey’s tenure as governor.
February’s rate of 2.5% is down from January 2023’s rate of 2.6% and below February 2022’s rate of 2.6%. Just 56,221 people in the state qualified under the official definition as being unemployed – i.e., they have no job and are actively looking for work. February’s 56,221 is a new record low. This is down from 58,392 unemployed in January 2023 and 58,943 a year ago in February of 2022.
“Once again, we’ve hit a record low unemployment rate,” stated Ivey. “While it may seem like we break these records month after month, we know that even with record low unemployment, we still have a duty to provide good, quality jobs to every Alabamian who wants one. I’m proud of our economic successes and reaffirm my commitment to continue to work to make this state the best place to live, work and raise a family.”
Wage and salary employment totaled 2,133,500 in February. This is an increase of 15,900 from January. Over the month gains were seen in the professional and business services sector (+3,800), the government sector (+3,500), the leisure and hospitality sector (+3,400), the private education and health services sector (+3,200), the manufacturing sector (+1,100), the construction sector (+700) and the information sector (+300), among others.
Wage and salary employment increased by 43,900 people over the year. Annual gains were seen in the education and health services sector (+8,600), the manufacturing sector (+8,200), the government sector (+7,600), the professional and business services sector (+7,300), the leisure and hospitality sector (+4,900), the other services sector (+3,600), the construction sector (+3,400), the information sector (+900) and the financial activities sector (+800), with the other services sector setting a new all-time record high jobs count.
“Job growth of nearly 44,000 over the year is definitely something to be proud of,” said Alabama Department of Labor Secretary Fitzgerald Washington. “We know that employers still have jobs that need to be filled, and we’re working to match those employers with those jobseekers. Our Career Center System has so many tools to help everyone succeed – I would definitely recommend visiting your local center if you need any assistance.”
The counties with the lowest unemployment rates are Shelby County at 1.7%, Morgan County and Madison County at 1.9%, and St. Clair County, Marshall County, Limestone County, Elmore County, Cullman County, and Blount County at 2.0%. The counties with the highest unemployment rates are Wilcox County at 8.0%, Greene County at 5.5%, and Dallas County at 5.1%.
The major cities with the lowest unemployment rates are Homewood and Madison at 1.5%, Trussville and Vestavia Hills at 1.6%, and Alabaster, Hoover, and Northport at 1.7 %. The major cities with the highest unemployment rates are Selma at 6.5%, Prichard at 4.3%, and Bessemer at 3.8%.
The labor participation rate for Alabamians 16 years and older continues to trouble policymakers. While unemployment is at a record low and businesses across the state struggle to find new workers, there was no improvement in labor force participation rate. It was unchanged at 56.7 percent. That is down from 57.1% in February 2022. Nationally the labor force participation rate ticked up to 62.5%.
Alabama Today on Wednesday talked with State Rep. Danny Garrett about the state’s poor labor force participation rate and its impact on state revenues, and the state’s high poverty rate.
“If we just got to the national average, it would be huge,” Garrett told Alabama Today. “It would be a sea change. The question is, how do we get there? Part of that is education. Part of that is getting people off of the programs that are keeping them out of the workforce. Part of that is focusing on areas of the state that are behind.”
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