July 2025

Released August 19, 2025

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United States

Employment snapshot

• In July, among the 50 states and the District of Columbia unemployment fell in 6, rose in 15, and remained unchanged in 30.

• The highest unemployment rate was 6 percent in District of Columbia, and the lowest was 1.9 percent in South Dakota. Nationally, the unemployment rate rose by 0.1 percentage point to 4.2 percent.

• In July, payroll jobs rose in 31 states and fell in 20. The largest payroll job percent increase was 0.6 percent in Missouri. The largest payroll job percent decline was 0.5 percent in Wyoming.

Alabama

Employment snapshot

• In July, Alabama added 3,400 net payroll jobs and the unemployment rate fell by 0.2 percentage point to 3 percent. In the prior month, Alabama lost 4,500 net payroll jobs.

• Over the past 12 months, Alabama added 24,800 net payroll jobs and the unemployment rate remained unchanged.

• Nationally, nonfarm payrolls rose by 73,000 in July, or 0 percent. Alabama is tied for 18th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In July, Alabama’s private sector added 3,000 net private payroll jobs, and over the past 12 months it added 19,700 private payroll jobs. In the prior month, Alabama lost 4,800 net private payroll jobs.

• In July, employment in Alabama rose by 987, and over the past 12 months it rose by 33,876.

• Alabama’s labor force participation rate fell to 57.9 percent in July from 58 percent and ranks 46th in the nation. In the past 12 months, the labor force participation rate has risen by 0.4 percentage points.

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Alabama

Payroll employment

• Alabama added 3,400 net payroll jobs, or 0.2 percent, on a seasonally adjusted basis during July. In the prior month, Alabama lost 4,500 jobs. Alabama nonfarm payroll employment has increased in 10 of the past 12 months.

• Nationally, nonfarm payrolls rose by 73,000 in July, or 0 percent. Alabama is tied for 18th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Alabama added 3,000 private sector jobs, or 0.2 percent, on a seasonally adjusted basis during July. In the prior month, Alabama lost 4,800 jobs. Alabama private sector payroll employment has increased in 10 of the past 12 months.

• Nationally, private sector payroll jobs rose by 83,000 jobs in July, or 0.1 percent. Alabama is tied for 18th in the nation for percentage gain in private sector payroll employment over the past 12 months.

From June 2025 to July 2025:

• The best performing sectors were Private Education and Health Services (+1,600) and Professional and Business Services (+1,200).
• The worst performing sectors were Other Services (-300) and Federal Government (-100).

From July 2024 to July 2025:

• The best performing sectors were Private Education and Health Services (+9,700) and State and Local Government (+5,900).
• The worst performing sectors were Financial Activities (-1,200) and Federal Government (-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 fell to 57.9 percent in July from 58 percent in the prior month.

• Alabama ranks 46th in the nation.

• The 10-year high for the labor force participation rate in Alabama was 58 percent occurring in June 2025, 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 62.2 percent in July.