With unemployment still sitting at a record low of 2.1%, the state is looking for ways to increase the number of Alabamians in the workforce.
Speaker of the House Nathaniel Ledbetter announced on Monday key House members that will serve on an ad hoc committee studying Alabama’s labor force participation rates and identifying barriers to workforce entry.
In July, Gov. Kay Ivey said labor force participation was a top priority.
“Despite having one of the lowest unemployment rates in the country and a record number of Alabamians working, the percentage of Alabamians participating in the labor force is lower than almost any other state,” Gov. Ivey wrote in an op-ed. “While we are increasing that by the tens of thousands, we have to change this statistic. Getting folks off the sidelines and into the labor force is my next priority.”
In September, Alabama Department of Labor Secretary Fitzgerald Washington announced that Alabama’s Labor Force Participation Rate (LFPR) rose only slightly in August to 57.0%. This is up from last August’s rate of 56.9%.
“Alabama is witnessing record-breaking economic growth and historically low unemployment rates,” Ledbetter said in a press release. “Despite these numbers, in Alabama, there are roughly 140,000 job openings and, at the same time, 48,834 unemployed workers across our state. That means we are lacking nearly 100,000 workers over 16 years old, which puts our labor force participation rate at a mere 57 percent—one of the lowest rates in the entire country.”
“Yet again, we are announcing record-breaking economic statistics this month,” said Secretary Washington. “While our labor force participation rate remained unchanged, we are continuing to work with marginalized groups to get them into our labor force.”
The House Members serving on the study commission will be Rep. Reed Ingram (R–Pike Road) – Chairman; Rep. Danny Garrett (R–Trussville); Rep. Donna Givens (R–Robersdale); Rep. Anthony Daniels (D–Huntsville); Rep. James Lomax (R–Huntsville); Rep. Barbara Drummond (D–Mobile); Rep. Mike Kirkland (R–Scottsboro); Rep. Bill Lamb (R–Tuscaloosa); Rep. Kelvin Lawrence (D–Hayneville); Rep. Curtis Travis (D–Tuscaloosa); Rep. Chris Pringle (R–Mobile); Rep. Matt Woods (R–Jasper); Rep. Wes Kitchens (R–Guntersville); Rep. Jim Carns (R–Birmingham); Rep. Scott Stadthagen (R–Hartselle).
“Over the coming months, it will be imperative for this group to build on the progress of, and collaborate with, existing entities such as the Lt. Governor’s Commission on 21st Century Workforce, the Alabama Community College System, Alabama higher-education institutions, and essential stakeholders across the private sector,” stated Ledbetter.
Some specific areas the study commission will address are extending adequate childcare to families, examining the correlation between productivity growth and labor output, ensuring wages and salaries are competitive, addressing workforce housing concerns, and offering improved and more expansive mental health programs and services.
“An insufficiency of resources such as these creates barriers to workforce entry as much as an absence of quality education,” Ledbetter concluded.
