From December 2024 to March 2025, Alabama’s private sector saw a net employment loss of 3,303 jobs, according to data released by the U.S. Bureau of Labor Statistics (BLS). Gross job losses from closing and contracting establishments reached 95,520 during the first quarter of 2025, while gross job gains from opening and expanding establishments totaled 92,217.
Victoria G. Lee, Regional Commissioner for the BLS, noted that “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 had seen a net gain of 6,688 jobs.
The Business Employment Dynamics (BED) statistics track changes in employment at private-sector businesses over time. The figures reflect both expansions and contractions across all industries.
In Alabama during this period, gross job losses accounted for 5.6 percent of private-sector employment—slightly higher than the national rate of 5.4 percent. Contracting establishments in Alabama lost 77,418 jobs in the first quarter of 2025, an increase compared to the prior quarter. Jobs lost due to business closures rose as well.
Gross job gains represented 5.3 percent of Alabama’s private-sector employment in this timeframe; nationally, that figure was slightly higher at 5.6 percent. Expanding businesses in Alabama added a total of 74,521 jobs—a decrease from the previous quarter—while new establishments contributed another 17,696 jobs.
Six out of ten major industry sectors in Alabama reported more job losses than gains for this period. Transportation and warehousing experienced the largest decline with a net loss of 2,876 jobs; professional and business services followed with a net loss of 1,046 jobs. Conversely, education and health services posted a net gain—the largest among sectors—with an increase of 1,002 jobs.
The BED data series provides details on gross job gains and losses by industry subsector for all states as well as certain U.S. territories and includes information by employer size class.
BED data are produced through a federal-state cooperative program using records from the Quarterly Census of Employment and Wages (QCEW). Further information is available on the Business Employment Dynamics homepage and in related summaries online.
The next release covering second quarter results is scheduled for February 26, 2026.
