From December 2024 to March 2025, Alabama’s private sector experienced a net employment loss of 3,303 jobs, according to data released by the U.S. Bureau of Labor Statistics (BLS). The report showed that gross job losses from closing and contracting establishments reached 95,520, while gross job gains from opening and expanding establishments totaled 92,217.
Regional Commissioner Victoria G. Lee stated, “The difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 3,303 jobs in the private sector during the first quarter of 2025.” In comparison, the previous quarter saw gross job gains outpace losses by 6,688.
Business Employment Dynamics (BED) statistics track changes in employment at private-sector businesses from one quarter to the next. These figures reflect both increases due to expansions and new openings as well as decreases resulting from contractions and closures.
During this period, gross job losses accounted for 5.6 percent of private-sector employment in Alabama—slightly higher than the national rate of 5.4 percent. Contracting establishments were responsible for most of these losses with 77,418 jobs lost—an increase over the prior quarter—while closing establishments contributed an additional loss of 18,102 jobs.
Gross job gains represented 5.3 percent of Alabama’s private-sector employment compared to a national figure of 5.6 percent. Expanding establishments added 74,521 jobs in Alabama during this time frame—a decrease from the previous quarter—and opening establishments contributed another 17,696 jobs gained.
Six out of ten major industry sectors in Alabama recorded more job losses than gains in early 2025. Transportation and warehousing saw the largest net decrease with a loss of 2,876 jobs; professional and business services had a net loss of 1,046 jobs. Education and health services reported a net gain of 1,002 jobs—the highest among all sectors in the state.
The BED data series provide detailed information on gross job gains and losses by industry subsector across all states as well as by employer size class at the firm level. Further details are available on the Business Employment Dynamics homepage and summary page provided by BLS.
The next release covering second quarter data is scheduled for February 26, 2026.
BED data are compiled through a federal-state cooperative program using records from the Quarterly Census of Employment and Wages (QCEW).
For more information on definitions or methodology used in this release or for accessibility requests, individuals may contact BLS via voice phone or Telecommunications Relay Service.
