May 2025

Released June 24, 2025

Released April 18, 2025

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United States Employment Snapshot

• In May, among the 50 states and the District of Columbia unemployment fell in 13, rose in 14, and remained unchanged in 24.

• The highest unemployment rate was 5.9 percent in District of Columbia, and the lowest was 1.8 percent in South Dakota. Nationally, the unemployment rate remained unchanged in May.

• In May, payroll jobs rose in 37 states and fell in 11. The largest payroll job percent increase was 0.4 percent in Montana. The largest payroll job percent decline was 0.4 percent in Connecticut.

Alabama Employment Snapshot

• In May, Alabama added 400 net payroll jobs and the unemployment rate remained unchanged at 3.3 percent. In the prior month, Alabama added 5,200 net payroll jobs.

• Over the past 12 months, Alabama added 25,900 net payroll jobs and the unemployment rate rose by 0.4 percentage points from 2.9 percent.

• Nationally, nonfarm payrolls rose by 139,000 in May, 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 May, Alabama’s private sector lost 200 net private payroll jobs, and over the past 12 months it added 20,300 private payroll jobs. In the prior month, Alabama added 4,500 net private payroll jobs.

• In May, employment in Alabama rose by 4,725, and over the past 12 months it rose by 34,312.

• Alabama’s labor force participation rate remained steady at 58 percent in May and ranks 45th in the nation. In the past 12 months, the labor force participation rate has risen by 0.6 percentage points.

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Alabama Payroll Employment

• Alabama added 400 net payroll jobs, or 0 percent, on a seasonally adjusted basis during May. In the prior month, Alabama added 5,200 jobs. Alabama nonfarm payroll employment has increased in 10 of the past 12 months.

• Nationally, nonfarm payrolls rose by 139,000 in May, 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 lost 200 private sector jobs, or 0 percent. on a seasonally adjusted basis during May. In the prior month, Alabama added 4,500 jobs. Alabama private sector payroll employment has increased in 9 of the past 12 months.

• Nationally, private sector payroll jobs rose by 140,000 jobs in May, 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.

• The best performing sectors on a seasonally adjusted basis during May were Leisure and Hospitality (1,300) and Education and Health Services (800).

• The poorest performing sectors during the month were Trade, Transportation, and Utilities (-900) and Professional and Business Services (-1,300).

• The best performing sectors during the last 12 months were Education and Health Services (8,600) and Government (5,600).

• The poorest performing sectors during the last 12 months were Information (-300) and Professional and Business Services (-3,800).

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 58 percent in May.

• Alabama ranks 45th in the nation.

• The 10-year high for the labor force participation rate in Alabama was 58 percent occurring in May 2025, and the 10-year low was 55.4 percent in April 2020.

• The national labor force participation rate fell by 0.2 percentage points to 62.4 percent in May.