From December 2024 to March 2025, Alabama experienced a net loss of 3,303 private-sector jobs, according to the U.S. Bureau of Labor Statistics (BLS). The period saw gross job losses from closing and contracting private-sector establishments reach 95,520, while gross job gains from opening and expanding establishments totaled 92,217.
Victoria G. Lee, Regional Commissioner for the BLS, stated that the net employment change resulted from subtracting gross job losses from gross job gains. In the previous quarter, Alabama had seen a net increase in jobs with gains exceeding losses by 6,688.
Business Employment Dynamics (BED) statistics measure changes in employment at private-sector businesses each quarter. These figures reflect expansions and contractions at existing businesses as well as openings and closings.
During the first quarter of 2025, gross job losses made up 5.6 percent of private-sector employment in Alabama; nationwide this figure was slightly lower at 5.4 percent. Contracting establishments in Alabama lost 77,418 jobs—an increase of 2,691 over the prior quarter—while closing establishments accounted for another 18,102 lost jobs.
Gross job gains during this period represented 5.3 percent of private-sector employment in Alabama compared to a national rate of 5.6 percent. Expanding establishments added 74,521 jobs in Alabama—a decrease of 4,436 from the previous quarter—and opening establishments created an additional 17,696 jobs.
In six out of ten major industry sectors in Alabama during this period, gross job losses surpassed gains. The transportation and warehousing sector saw the largest decline with a net loss of 2,876 jobs after accounting for both gains and losses within the sector. Professional and business services posted a net loss of 1,046 jobs. In contrast, education and health services registered a net gain of 1,002 jobs—the highest among all sectors measured.
The BED series provides detailed data on gross job gains and losses by industry subsector for every state as well as selected territories and includes breakdowns by employer size class at the firm level.
BED data are compiled through cooperation between federal and state agencies using records from the Quarterly Census of Employment and Wages (QCEW). Further information is available on the Business Employment Dynamics homepage and Business Employment Dynamics Summary. Formal definitions regarding coverage and methodology can be found in the Business Employment Dynamics Technical Note.
The next release covering second-quarter data is scheduled for February 26, 2026.
