January 2026

Released April 08, 2026

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United States

Employment snapshot

• In January, among the 50 states and the District of Columbia unemployment fell in 9, rose in 22, and remained unchanged in 20.

• The highest unemployment rate was 6.7 percent in District of Columbia, and the lowest was 2.2 percent in Hawaii and South Dakota. Nationally, the unemployment rate fell by 0.1 percentage point to 4.3 percent.

• In January, payroll jobs rose in 45 states and fell in 6. The largest payroll job percent increase was 0.5 percent in California and North Dakota. The largest payroll job percent decline was 0.7 percent in District of Columbia.

Alabama

Employment snapshot

• In January, Alabama added 7,800 net payroll jobs and the unemployment rate remained unchanged at 2.7 percent. In the prior month, Alabama added 1,000 net payroll jobs.

• Over the past 12 months, Alabama added 8,100 net payroll jobs and the unemployment rate fell by 0.4 percentage points from 3.1 percent.

• Nationally, nonfarm payrolls rose by 178,000 in March, or 0.1 percent. Alabama is tied for 14th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In January, Alabama’s private sector added 7,700 net private payroll jobs, and over the past 12 months it added 7,900 private payroll jobs. In the prior month, Alabama added 1,300 net private payroll jobs.

• In January, employment in Alabama rose by 554, and over the past 12 months it rose by 17,703.

• Alabama’s labor force participation rate remained steady at 57.6 percent in January and is tied for 47th in the nation. In the past 12 months, the labor force participation rate has fallen by 0.2 percentage points.

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Alabama

Payroll employment

• Alabama added 7,800 net payroll jobs, or 0.4 percent, on a seasonally adjusted basis during January. In the prior month, Alabama added 1,000 jobs. Alabama nonfarm payroll employment has increased in 7 of the past 12 months.

• Nationally, nonfarm payrolls rose by 178,000 in March, or 0.1 percent. Alabama is tied for 14th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Alabama added 7,700 private sector jobs, or 0.4 percent, on a seasonally adjusted basis during January. In the prior month, Alabama added 1,300 jobs. Alabama private sector payroll employment has increased in 7 of the past 12 months.

• Nationally, private sector payroll jobs rose by 186,000 jobs in March, or 0.1 percent. Alabama is tied for 17th in the nation for percentage gain in private sector payroll employment over the past 12 months.

From December 2025 to January 2026:

• The best performing sectors were Professional and Business Services (+2,400) and Construction (+1,500).
• The worst performing sectors were Federal Government (-600) and Information (-100).

From January 2025 to January 2026:

• The best performing sectors were State and Local Government (+6,400) and Leisure and Hospitality (+6,000).
• The worst performing sectors were Federal Government (-6,200) and Trade, Transportation, and Utilities (-3,900).

Alabama

Labor force

The labor force participation rate is the percentage of the civilian noninstitutionalized population age 16 and older who are employed or actively looking for work.

• The labor force participation rate in Alabama remained unchanged at 57.6 percent in January.

• Alabama is tied for 47th in the nation.

• The 10-year high for the labor force participation rate in Alabama was 57.8 percent occurring in February 2019, and the 10-year low was 55.4 percent in April 2020.

• The national labor force participation rate fell by 0.1 percentage points to 61.9 percent in March.