Alabama’s unemployment rate increased to a five-year high in September. According to a release by the Alabama Department of Workforce on Friday, Alabama’s preliminary, seasonally adjusted unemployment rate was 3.5% in September, up slightly from August 2026’s rate of 3.4%, and above September 2025’s rate of 2.8%. The rate represents 82,075 unemployed persons, compared to 80,550 in August and 65,692 in September 2025. The last time Alabama had an unemployment rate at 3.5% or higher was June 2021. The number of people counted as employed fell by 2,080 to 2,279,937. The civilian labor force also fell to 2,362,012, with 555 fewer people joining the labor force over the month.
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