From December 2024 to March 2025, private-sector businesses in Alabama experienced a net loss of 3,303 jobs, according to the U.S. Bureau of Labor Statistics (BLS). Gross job losses from closing and contracting establishments totaled 95,520, while gross job gains from opening and expanding establishments reached 92,217 during the first quarter of 2025.
Regional Commissioner Victoria G. Lee stated that the difference between gross job gains and losses resulted in the overall employment decline for this period. In contrast, the previous quarter saw a net gain of 6,688 jobs.
Gross job losses represented 5.6 percent of private-sector employment in Alabama during the first quarter of 2025. Nationally, this figure was slightly lower at 5.4 percent. Contracting establishments in Alabama lost 77,418 jobs—an increase of nearly 2,700 compared to the prior quarter—while closing establishments accounted for an additional loss of over 18,100 jobs.
Gross job gains made up 5.3 percent of private-sector employment in Alabama for the same period; nationally it was higher at 5.6 percent. Expanding establishments added just over 74,500 jobs—a decrease compared to the previous quarter—and opening establishments contributed nearly 17,700 new positions.
Six out of ten major industry sectors in Alabama recorded more gross job losses than gains during this time frame. The transportation and warehousing sector reported the largest net decrease with a loss of almost 2,900 jobs due to high gross job losses relative to gains within that sector. Professional and business services had a net loss exceeding one thousand jobs while education and health services posted a net gain of just over one thousand—the highest among all sectors analyzed.
The BLS compiles Business Employment Dynamics (BED) data as part of its Quarterly Census of Employment and Wages program through cooperation with state agencies across all states and territories. The BED series tracks changes in employment by industry subsector and employer size class for each state as well as select territories such as Puerto Rico and the Virgin Islands.
More details on methodology are available through official BLS resources including technical notes accessible online via their Business Employment Dynamics homepage.
The next BED release covering data for the second quarter of 2025 is scheduled for February 26, 2026.
Individuals needing information in alternative formats can contact BLS by phone or through Telecommunications Relay Service.
