BBA Data Debrief – March 2025
Each month, The Alabama Labor Market Information (LMI) newsletter provides data and analysis on workforce, including labor force participation rates, unemployment rates and employment trends on a statewide and regional level. In coordination with the LMI, the Birmingham Business Alliance (BBA) will publish the “Data Debrief,” where BBA Market Intelligence Manager Tatianna Turrentine-Long will explain the LMI data for the previous month, highlight changes in our regional labor market and provide important insights. The key points for the LMI of March 2025 is as followed:
Key Point #1 | Alabama is experiencing minimal change in the labor force participation rate (58.0%) and a gradual increase in the unemployment rate (3.4%). Last month, the labor force participation rate was one-tenth of a percentage point below this month’s rate. At this time last year, the labor force participation rate was only six-tenths of a percentage point below the March 2025 rate. Even though the unemployment rate has exponentially increased, the state is below the national unemployment rate of 4.4%. The uptick in employment could be related to the abnormal number of layoffs companies in the state have announced, which is estimated to be around 1,700 for the year so far.
Key Point #2 | Across all industry sectors between February 2025 and March 2025 in the state and the Greater Birmingham region, except for Leisure/Hospitality and Government Services, there has been a slight decrease in employment and average weekly earnings. St. Clair (2.7%) and Shelby Counties (2.8%) held two of the lowest unemployment rates across all counties in the state, respectively. Jefferson (61.3%), Shelby (65.5%), and St. Clair Counties (60.3%) also maintained the highest labor force participation rates within the state (besides Madison County (65.6%).
Key Point #3 | Besides Daphne-Fairhope-Foley, nearly all MSAs in the state had significant decreases in net month-to-month job growth by year-over-year employment across all sectors. The most notable losses are Huntsville MSA (6,400 in March 2024, 200 in February 2025), Mobile (3,800 in March 2024, 800 in February 2025), Montgomery (2,500 in March 2024, 800 in February 2025), and Birmingham MSA (1,200 in March 2024, 300 in February 2025). This means that in comparison to February and March of last year, there has been a decrease in month-to-month employment and job growth between February and March of this year.
In conclusion, the Birmingham MSA’s labor market mirrors some trends in the state and nationally, but is still showing signs of growth across major counties like Shelby, Jefferson and St. Clair. Additionally, we continue to maintain a higher-than-state-average unemployment and labor force participation rate, but with a need to bring and retain quality jobs for our workforce.
At the BBA, our priority goal is to work towards aligning the region around a shared vision for job creation and capital investment. From major expansions like Truckworx to attending industry conferences shaping the future of the mobility and automotive industry, we’re understanding and learning long-term and future-proof strategies to continue advancing the region’s automotive sector, among other vibrant and fast-growing industries.
Workforce development and finding and keeping talent are also important factors supporting the labor market. This summer, we’re looking forward to showing young talent “Why Birmingham” is a great place to work, live and play through FuelAL, BBA’s program for summer interns, in partnership with Innovate Alabama and the Economic Development Partnership of Alabama (EDPA).
Our efforts in job creation and workforce development improve each month and reflect our commitment to creating meaningful opportunities for both businesses and talent across the Birmingham Region.