Alabama’s unemployment rate remains at 3.3%, highest May number since 2021

The Department of Labor released its latest unemployment report, showing very little change to the state’s unemployment rate.

Alabama’s seasonally adjusted unemployment rate has been at 3.3% since September 2024. The official unemployment count for the month of May was 78,246—510 lower than April’s count.

The 3.3% unemployment rate is higher than last year’s 2.9% in May. It’s the highest May unemployment rate since 2021. The unemployment rate never reached above 3% in 2022 or 2023.

Alabama’s rate remains well below the national unemployment rate of 4.2%.

Alabama unemployment

According to the Department of Labor, the civilian labor force increased to a new record-high 2,384,601 with 44,680 more people joining over the year.

The latest report said wage and salary employment increased to 2,217,600, a new record high, with major gains in:

• Private education
• Health services sector
• Leisure and hospitality sector
• Government sector

Shelby County has the lowest unemployment at 2.2% with several others sitting just behind them at 2.3% including:

• Elmore
• Limestone
• Madison
• Morgan
• St. Clair

Counties with the highest unemployment rates are: Greene County at 6.2%, Perry County at 5.5%, and Wilcox County at 5.2%.

Some major cities have unemployment rates of just 2% including Vestavia Hills, Trussville, Madison, and Homewood.

The highest unemployment rates for cities are Prichard at 5.6%, Selma at 4.9% and Bessemer at 4.0%.

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