Alabama unemployment remains below 3% in first report of 2026
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For the first time since October 2025, the Alabama Department of Labor has publicly released its official unemployment numbers. And the state continues to remain well below the national unemployment rate.
Here are some of the key numbers from the March 2026 report:
- AL unemployment rate (March 2026): 2.7
- AL unemployment rate (Feb. 2026): 2.7
- AL unemployment rate (March 2025): 3.0
- Total unemployment: 65,474
- National unemployment rate: 4.3
Keep reading to learn more details from the recent report.
Alabama unemployment
The number of people counted as employed increased by 11,027 over the year to 2,318,507. The civilian labor force also increased to 2,383,981, with 5,639 more people joining over the year.
Counties with the lowest unemployment rates are:
- Shelby: 2.2%
- Elmore: 2.3%
- St. Clair, Morgan, Marshall, Madison, Limestone, Lee, Chilton, and Blount: 2.4%.
Counties with the highest unemployment rates are: Perry County at 6.5%, Monroe County at 6.1%, and Greene County at 6.0%.
Major cities with the lowest unemployment rates include:
- Trussville: 2%
- Pelham: 2%
- Hoover: 2.1%
- Vestavia Hills, Madison, Homewood, and Alabaster: 2.2%
Major cities with the highest unemployment rates are: Prichard at 6.0%, Selma 4.9%, and Bessemer at 4.3%.
Wages + salary
Over the year, wage and salary employment increased by 11,200 to 2,198,100, with gains in the leisure and hospitality sector (+5,000), the private education and health services sector (+4,600), and the professional and business services sector (+3,300), among others.
Average weekly wages in Alabama increased by $71.64 over the year, to a new record high of $1,178.60.
“Wages in Alabama continue to rise and to represent some of the highest year over year increases in the nation. Our commitment to business and industry means that we will continue working to lead quality, high-paying jobs to our state. These increases in wages are reflecting that commitment and our dedication to creating the best workforce in the country.”
Alabama Department of Workforce Secretary Greg Reed
