Huntsville and Decatur posted Alabama’s lowest metro-area unemployment rates in July, offering a positive sign for the local job market.
Huntsville unemployment falls to 3.1%
Huntsville’s unemployment rate dropped to 3.1% in July, down from 3.3% in June. Decatur matched Huntsville at 3.1%, giving both metros the lowest rates among Alabama’s 12 metro areas.
According to online reports, Alabama’s overall unemployment rate rose slightly to 3.4% in July from 3.2% in June.
The statewide unadjusted rate, however, fell from 3.9% to 3.7%.
Local metros see improvement
All 12 Alabama metro areas recorded lower unemployment rates in July than in June.
Other notable rates included:
Daphne-Fairhope-Foley: 3.2%
Auburn-Opelika: 3.6%
Birmingham: 3.6%
Dothan: 3.6%
Gadsden: 3.8%
Montgomery: 3.7%
Florence-Muscle Shoals: 4.0%
Tuscaloosa: 4.3%
Mobile: 4.4%
However, every metro remained above its July 2025 rate.
Nearly 87,000 Alabamians unemployed
The latest figures show just under 87,000 unemployed people across Alabama’s civilian labor force.
That marks an improvement from June, when the state recorded about 92,000 unemployed workers.
For Huntsville, the 3.1% rate keeps the metro among Alabama’s strongest performers. The figures also point to continued demand for workers across the Rocket City and surrounding communities.
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