On Friday, Alabama Department of Labor Secretary Fitzgerald Washington reported that Alabama’s labor force participation rate remained steady at 57.0% in October, with no improvement from September. The percentage of prime-age workers increased by one-tenth of a percentage point to 78.1% over the month. Prime-age workers is defined as those aged 25-54 years.
“We are continuing to see positive growth in our prime-age worker labor force participation rate, with more than three out of every four prime-age Alabamians holding down a job,” said Washington. “One of the main components of the labor force participation rate is the state’s total population, and Alabama has a larger portion of retired workers. We will continue to work to bring in other, more traditionally underutilized segments of the population to ensure that we are maximizing our workforce.”
Alabama’s preliminary, seasonally adjusted October unemployment rate is 2.3%. That is up slightly from September’s rate of 2.2%, which was up from August’s record low rate of 2.1%. October’s rate is still well below October 2022’s rate of 2.6%. There were 2,030 more unemployed workers in October than in September. The rate represents 52,196 unemployed persons, compared to 50,166 in September, That is still well below the 60,443 in October 2022.
On the bright side, however, the number of people counted as employed increased by 38,038 over the year to a new record high of 2,260,806. The civilian labor force also increased to a new record high of 2,313,002, with 29,791 more people joining the labor force over the year.
“Our labor force is growing, and more and more people are working,” continued Washington.
It is unclear how many of those new workers represent people moving to Alabama to take open positions rather than Alabamians on the sidelines choosing to reenter the labor force.
Businesses are paying more to attract and retain workers than ever before.
“Additionally, Alabamians are earning more money – this month, we saw our average weekly wages rise to a new record high of $1,027.76,” Washington said.
The total private average weekly wage increased in October by $8.10 over the year to a new record high of $1,027.76. Average weekly wages in both the construction and financial activities sectors reached new record highs, with construction wages increasing by $71.63 per week and financial activities wages increasing by $104.68 weekly.
Over the year, wage and salary employment increased by 24,700, reaching a new record high of 2,163,400, with gains in the private education and health services sector (+8,700), the government sector (+7,400), and the trade, transportation, and utilities sector (+5,900), among others.
Wage and salary employment increased in October by 5,700. Monthly gains were seen in the professional and business services sector (+3,300), the government sector (+3,100), and the trade, transportation, and utilities sector (+1,600), among others.
The counties with the lowest unemployment rates are Shelby County at 1.8%, Morgan, Limestone, Cullman, and Chilton Counties at 1.9%, and St. Clair, Marshall, Madison, Elmore, Cleburne, Cherokee, Bullock, and Blount Counties at 2.0%. The counties with the highest unemployment rates are Wilcox County at 7.8%, Dallas County at 5.6%, and Clarke and Perry Counties at 4.6%.
The major cities with the lowest unemployment rates are Alabaster, Homewood, and Vestavia Hills at 1.6%, Hoover, Madison, and Trussville at 1.7%, and Athens at 1.8%. The major cities with the highest unemployment rates are Selma at 6.6%, Prichard at 4.8%, and Bessemer at 4.0%.
On Thursday, a Legislative committee met to consider what the state can do to improve the workforce participation rate and the skill level of the labor force.
Alabama has one of the worst labor force participation rates in the country.
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