Alabama Unemployment Rate Hits 5-Year High
By Rick McCann
Blue RAM Media/Public Safety Network
October 19, 2026
MONGTGOMERY, Ala. Alabama’s unemployment rate hit a five-year high in September.
According to a release by the Alabama Department of Workforce on Friday, Alabama’s preliminary, seasonally adjusted unemployment rate was 3.5% in September, up slightly from August 2026’s rate of 3.4%, and above September 2025’s rate of 2.8%.
The rate represents 82,075 unemployed people, compared to 80,550 in August and 65,692 in September 2025.
The last time Alabama had an unemployment rate at 3.5% or higher was June 2021.
Alabama has a unique mix of seasonal and year-round employees which often fluctuate throughout the year which annually increases and decreases our employment rate, said George Wickersham, an economist.
The number of people counted as employed fell by 2,080 to 2,279,937. The civilian labor force also fell to 2,362,012, with 555 fewer people joining the labor force over the month.
Counties with the lowest unemployment rates are:
Shelby, Limestone, and Chambers Counties at 3%; Morgan and Elmore Counties at 3.1%; and Madison and Blount Counties at 3.2%.
Counties with the highest unemployment rates are:
Perry County at 6.6%, Greene County at 6.5% and Monroe County at 6.4%.
Other areas of the state continue to show strong employment numbers, including Baldwin County which is also a large part of that seasonal employment highs and lows.
Major cities with the lowest unemployment rates are:
Pelham at 2.6%, Vestavia Hills at 2.8%, and Trussville and Alabaster at 2.9%.
Major cities with the highest unemployment rates are:
Prichard at 7%, Selma at 5.8%, and Tuscaloosa at 5%.
Alabama Department of Workforce Secretary Greg Reed announced on Friday that Alabama’s prime-age labor force participation rate increased to 79.5%, up from 78.4% a year ago. Prime-age workers are those aged 25-54 years.
“What these numbers show us is that the people who can and should be working, are working,” said Reed. “Nearly 80% of prime-age workers have jobs. Additionally, a lot of those who aren’t being counted are older adults, as Alabama has a larger retiree population. Ultimately, our mission is to ensure that every Alabamian who wants a job has a job, and we will continue working throughout the state to make that a reality.”
Of those not counted in the labor force participation rate, 61.7% are aged 55 or older.
Older workers are either staying employed or becoming reemployed and holding onto their jobs longer, which can be both good and bad, said Wickersham. As older people with more work experience vie for jobs, it can keep younger workers unemployed longer.
Over the year, wage and salary employment increased by 24,300 to 2,218,800, with gains in the leisure and hospitality sector (+10,200), the private education and health services sector (+7,300), and the professional and business services sector (+6,800), among others.
Additionally, the private education and health services sector rose 7,300 over the year to a record high of 272,000.
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