From December 2024 to March 2025, private-sector establishments in Alabama experienced more job losses than gains, according to a report from the U.S. Bureau of Labor Statistics (BLS). Gross job losses from closing and contracting businesses reached 95,520, while gross job gains from opening and expanding businesses totaled 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.
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 net employment growth with gross job gains exceeding losses by 6,688.
The BLS tracks these changes through its Business Employment Dynamics (BED) statistics, which monitor employment shifts at private businesses from one quarter to the next. The BED data provide insights into both increases and decreases in employment across all private-sector establishments.
In Alabama during this period, gross job losses accounted for 5.6 percent of private-sector employment—slightly higher than the national figure of 5.4 percent. Contracting establishments were responsible for most losses with 77,418 jobs lost—an increase over the prior quarter—while closing establishments accounted for an additional loss of 18,102 jobs.
Gross job gains represented 5.3 percent of Alabama’s private-sector employment; nationally, this figure was higher at 5.6 percent. Expanding establishments in Alabama added 74,521 jobs—a decrease compared to 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 during this time frame. The transportation and warehousing sector had the largest net decrease with a loss of 2,876 jobs due to significant gross job losses compared to gains within that sector. Professional and business services also posted a net loss of over one thousand jobs. On the other hand, education and health services reported a net gain of just over one thousand jobs—the highest among all sectors in Alabama.
The BED data series offer detailed information on gross job gains and losses by industry subsector across all states as well as territories such as Puerto Rico and the Virgin Islands. Data are also available by employer size class at the firm level.
The next release covering second-quarter results is scheduled for February 26, 2026.
According to BLS guidelines, BED data are produced through cooperation between federal and state agencies using records from the Quarterly Census of Employment and Wages program.
Further details about definitions used in these statistics can be found in technical notes provided by BLS or through their online resources.
