Alabama unemployment rate remains below national average
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Alabama’s seasonally-adjusted unemployment rate jumped to 3.2% in June 2026 but still remains below the national average.
The not seasonally-adjusted rate jumped to 3.9% which is largely due to school employees being out for the summer.
Alabama unemployment rate
Here are some of the numbers from the latest Labor Market Information newsletter:
- Seasonally adjusted
- National unemployment rate (June 2026): 4.2
- AL unemployment rate (June 2026): 3.2
- AL unemployment rate (May 2026): 3.0
- AL unemployment rate (June 2025): 2.9
- Not seasonally adjusted
- National unemployment rate (June 2026): 4.4
- AL unemployment rate (June 2026): 3.9
- AL unemployment rate (May 2026): 3.4
- AL unemployment rate (June 2025): 3.0
But it wasn’t all bad news in the latest report. Keep reading to learn more from the Alabama Department of Labor.
Leisure + hospitality create big employment gains
According to the Department of Labor, Alabama’s non-seasonally-adjusted wage and salary employment still increased by 6,200 jobs between May and June.
The biggest gains included:
- Leisure and hospitality (+5,200)
- Construction (+800)
- Transportation and utilities (+800)
Employment in leisure and hospitality has grown by 7,500 in the last 12 months, now employing more than 227,000 people statewide.
In the last month, more than 2,000 workers were added to the industry in the Birmingham metro area alone.
