From December 2024 to March 2025, private-sector establishments in Alabama experienced more job losses than gains, according to a report released by the U.S. Bureau of Labor Statistics (BLS). The data show that 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 state’s private sector during the first quarter of 2025.
Victoria G. Lee, Regional Commissioner at BLS, 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 contrast, during the previous quarter, there was a net gain as gross job gains exceeded losses by 6,688.
Business Employment Dynamics (BED) statistics measure these changes by tracking increases and decreases in employment at all private businesses over time. The figures represent both expansions or contractions at existing establishments and openings or closings.
In Alabama for this period, gross job losses represented 5.6 percent of private-sector employment; nationally this figure was slightly lower at 5.4 percent. Contracting establishments accounted for most lost jobs—77,418—which is an increase compared to the prior quarter. Closing establishments contributed an additional loss of 18,102 jobs.
Gross job gains made up 5.3 percent of Alabama’s private-sector employment during this quarter; nationally it stood at 5.6 percent. Expanding businesses in Alabama created 74,521 new positions—a decrease from the previous quarter—while opening establishments added another 17,696 jobs.
Six out of ten major industry sectors reported more losses than gains over this period. Transportation and warehousing saw the largest net decrease with a loss of 2,876 jobs due to higher losses compared to gains within that sector. Professional and business services also recorded a net loss with a reduction of 1,046 positions. Meanwhile education and health services posted a net gain—the largest among all sectors—with an increase of 1,002 jobs.
The BED data series provide detailed breakdowns by industry subsector across states and territories as well as employer size class information using records compiled through cooperation between federal and state agencies under the Quarterly Census of Employment and Wages program.
The next BED release covering second quarter results is scheduled for February 26, 2026.
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