From December 2024 to March 2025, private-sector establishments in Alabama experienced more job losses than gains, according to data released by the U.S. Bureau of Labor Statistics (BLS). Gross job losses from closing and contracting businesses totaled 95,520, while gross job gains from opening and expanding businesses reached 92,217. This resulted in a net employment loss of 3,303 jobs for the first quarter of 2025.
Regional Commissioner Victoria G. Lee stated 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 saw a net gain of 6,688 jobs.
The BLS explained that changes in employment over time reflect both increases and decreases at all private businesses. The Business Employment Dynamics (BED) statistics monitor these shifts each quarter.
In Alabama, gross job losses represented 5.6 percent of private-sector employment during this period. Nationally, this figure was slightly lower at 5.4 percent. Contracting establishments in Alabama lost 77,418 jobs—an increase from the prior quarter—while closing establishments accounted for an additional loss of 18,102 jobs.
Gross job gains made up 5.3 percent of private-sector employment in Alabama for the first quarter; nationally, it was higher at 5.6 percent. Expanding establishments added 74,521 jobs—a decrease compared to the previous quarter—and opening establishments contributed another 17,696 new positions.
Six out of ten published industry sectors in Alabama reported more job losses than gains during this period. Transportation and warehousing had the largest net decrease with a loss of 2,876 jobs due to higher gross job losses compared to gains within that sector. Professional and business services also posted a net loss with a reduction of 1,046 jobs. Conversely, education and health services recorded a net gain—the highest among sectors—with an increase of 1,002 jobs.
The BED data series provide detailed information on gross job gains and losses by industry subsector across all states as well as U.S territories such as Puerto Rico and the Virgin Islands.
The next release covering second-quarter data is scheduled for February 26, 2026 at https://www.bls.gov/news.release/archives/cewbd_02262026.htm.
BED data are compiled through a federal-state cooperative program known as Quarterly Census of Employment and Wages (QCEW), using existing records maintained by BLS.
Further details about definitions used in this report can be found on the Business Employment Dynamics Technical Note page at https://www.bls.gov/bdm/bdmtech.htm.
