MONTGOMERY, Ala. – Alabama Department of Workforce Secretary Greg Reed announced Friday, Jan. 23, that Alabama’s preliminary seasonally adjusted unemployment rate for December held steady at 2.7%. This is below December 2024’s rate of 3.3%. He said the rate represents 64,150 unemployed persons, compared to 65,264 in November and 78,478 in December 2024.
Cullman County’s December 2025 rate is 2.1%, down from 2.4% in November 2025 and 2.9% in December 2024.
“Alabama continues to lead the nation with one of the lowest unemployment rates in the country,” said Reed. “More and more people are entering our workforce and they are finding good, meaningful employment. I’m proud of Alabama’s achievements and hope to continue making strides in the year ahead.”
According to Reed, the number of people counted as employed increased by 35,819 over the year to 2,317,206, a new record high. The civilian labor force also increased to 2,381,356, with 21,491 more people joining over the year. And, he said, over the year, wage and salary employment increased by 9,100 to 2,221,300, with gains in the leisure and hospitality sector (+6,700), the private education and health services sector (+4,900) and the construction sector (+3,400), among others.
“As we continue to grow jobs in Alabama, wages are also increasing,” continued Reed. “For example, the construction sector saw a new record high in wages this month. When construction wages increase, that signals positive economic growth, with each construction dollar spent generating an additional $2-$3 in related economic activity.”
Reed said wages in the construction sector increased over the month to a new record high of $1,421.56 weekly.
Counties with the lowest unemployment rates are Shelby and Elmore counties at 1.8%; St. Clair, Morgan, Marshall, Madison, Limestone, Chambers and Blount counties at 1.9%; and Lee, Lawrence, DeKalb, Cleburne, Chilton and Autauga counties at 2.0%. Counties with the highest unemployment rates are Perry County at 5.1%, Monroe County at 4.8% and Greene County at 4.7%.
Major cities with the lowest unemployment rates are Trussville and Alabaster at 1.6%, Pelham and Hoover at 1.7% and Vestavia Hills, Prattville, Madison and Homewood at 1.8%. Major cities with the highest unemployment rates are: Prichard at 4.7%, Selma at 3.3% and Bessemer and Anniston at 3.2%.
