December 2025 | Released January 27, 2026

Download the full PDF for Alabama

Download the summary PDF for Alabama

United States

Employment snapshot

• In December, among the 50 states and the District of Columbia unemployment fell in 8, rose in 21, and remained unchanged in 22.

• 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 4.4 percent.

• In December, payroll jobs rose in 23 states and fell in 27. The largest payroll job percent increase was 0.4 percent in Delaware and Montana. The largest payroll job percent decline was 0.3 percent in Kansas and Nebraska.

Alabama

Employment snapshot

• In December, Alabama added 2,400 net payroll jobs and the unemployment rate remained unchanged at 2.7 percent. In the prior month, Alabama lost 5,700 net payroll jobs.

• Over the past 12 months, Alabama added 10,900 net payroll jobs and the unemployment rate fell by 0.6 percentage points from 3.3 percent.

• Nationally, nonfarm payrolls rose by 50,000 in December, or 0 percent. Alabama ranks 25th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In December, Alabama’s private sector added 2,100 net private payroll jobs, and over the past 12 months it added 10,100 private payroll jobs. In the prior month, Alabama lost 5,800 net private payroll jobs.

• In December, employment in Alabama rose by 4,592, and over the past 12 months it rose by 35,819.

• Alabama’s labor force participation rate rose to 57.7 percent in December from 57.6 percent and ranks 47th in the nation. In the past 12 months, the labor force participation rate has risen by 0.1 percentage points.

---

Alabama

Payroll employment

• Alabama added 2,400 net payroll jobs, or 0.1 percent, on a seasonally adjusted basis during December. In the prior month, Alabama lost 5,700 jobs. Alabama nonfarm payroll employment has increased in 7 of the past 12 months.

• Nationally, nonfarm payrolls rose by 50,000 in December, or 0 percent. Alabama ranks 25th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Alabama added 2,100 private sector jobs, or 0.1 percent, on a seasonally adjusted basis during December. In the prior month, Alabama lost 5,800 jobs. Alabama private sector payroll employment has increased in 8 of the past 12 months.

• Nationally, private sector payroll jobs rose by 37,000 jobs in December, or 0 percent. Alabama is tied for 22nd in the nation for percentage gain in private sector payroll employment over the past 12 months.

From November 2025 to December 2025:

• The best performing sectors were Professional and Business Services (+2,100) and Leisure and Hospitality (+700).
• The worst performing sectors were Manufacturing (-1,100) and Private Education and Health Services (-400).

From December 2024 to December 2025:

• The best performing sectors were Leisure and Hospitality (+6,600) and State and Local Government (+5,900).
• The worst performing sectors were Federal Government (-5,100) and Trade, Transportation, and Utilities (-2,500).

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 rose to 57.7 percent in December from 57.6 percent in the prior month.

• Alabama ranks 47th in the nation.

• The 10-year high for the labor force participation rate in Alabama was 58 percent occurring in April 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 62.4 percent in December.