July 2026

Released August 21, 2026

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United States

Employment snapshot

• In July, among the 50 states and the District of Columbia unemployment fell in 29, rose in 4, and remained unchanged in 18.

• The highest unemployment rate was 5.9 percent in District of Columbia, and the lowest was 2 percent in South Dakota. Nationally, the unemployment rate fell by 0.1 percentage point to 4.1 percent.

• In July, payroll jobs rose in 27 states and fell in 24. The largest payroll job percent increase was 0.4 percent in Maryland. The largest payroll job percent decline was 0.6 percent in New Jersey.

Alabama

Employment snapshot

• In July, Alabama lost 2,000 net payroll jobs and the unemployment rate rose by 0.2 percentage point to 3.4 percent. In the prior month, Alabama added 1,300 net payroll jobs.

• Over the past 12 months, Alabama added 17,500 net payroll jobs and the unemployment rate rose by 0.6 percentage points from 2.8 percent.

• Nationally, nonfarm payrolls fell by 23,000 in July, or 0 percent. Alabama is tied for 9th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In July, Alabama’s private sector lost 2,300 net private payroll jobs, and over the past 12 months it added 11,600 private payroll jobs. In the prior month, Alabama added 700 net private payroll jobs.

• In July, employment in Alabama fell by 7,709, and over the past 12 months it fell by 22,283.

• Alabama’s labor force participation rate fell to 56.9 percent in July from 57.1 percent and ranks 48th in the nation. In the past 12 months, the labor force participation rate has fallen by 0.6 percentage points.

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Alabama

Payroll employment

• Alabama lost 2,000 net payroll jobs, or -0.1 percent, on a seasonally adjusted basis during July. In the prior month, Alabama added 1,300 jobs. Alabama nonfarm payroll employment has increased in 8 of the past 12 months.

• Nationally, nonfarm payrolls fell by 23,000 in July, or 0 percent. Alabama is tied for 9th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Alabama lost 2,300 private sector jobs, or -0.1 percent, on a seasonally adjusted basis during July. In the prior month, Alabama added 700 jobs. Alabama private sector payroll employment has increased in 7 of the past 12 months.

• Nationally, private sector payroll jobs rose by 30,000 jobs in July, or 0 percent. Alabama is tied for 16th in the nation for percentage gain in private sector payroll employment over the past 12 months.

From June 2026 to July 2026:

• The best performing sectors were Private Education and Health Services (+1,000) and Professional and Business Services (+400).
• The worst performing sectors were Construction (-2,200) and Trade, Transportation, and Utilities (-600).

From July 2025 to July 2026:

• The best performing sectors were State and Local Government (+9,800) and Leisure and Hospitality (+6,500).
• The worst performing sectors were Trade, Transportation, and Utilities (-4,600) and Federal Government (-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 fell to 56.9 percent in July from 57.1 percent in the prior month.

• Alabama ranks 48th 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 61.4 percent in July.