Montgomery's unemployment rate was 4.2% in September, up from 3.5% a year earlier and above Alabama's 3.7%. About 3,700 city residents were out of work and looking.
Montgomery’s unemployment rate was 4.2% in September, up from 3.5% in September 2025.
Updated Oct. 29: this story now carries the September figures. The bureau revised August’s counts slightly; August’s rates did not change.
About 3,700 city residents were out of work and looking for a job, against 3,111 a year earlier. That is 589 more people. The figures are from the U.S. Bureau of Labor Statistics local area unemployment series for the city. September numbers are preliminary and can be revised.
The rate rose from 4.1% in August. It has been 4% or higher since June.
How Montgomery compares
Montgomery’s rate is higher than the state’s and its neighbors’.
| Area | September 2026 | September 2025 |
|---|---|---|
| City of Montgomery | 4.2% | 3.5% |
| Montgomery County | 4.1% | 3.4% |
| Alabama | 3.7% | 3.0% |
| Autauga County (Prattville) | 3.4% | 2.6% |
| Elmore County (Millbrook, Wetumpka) | 3.1% | 2.4% |
Every area in the table rose by between 0.7 and 0.8 of a percentage point over the year. So the increase is not Montgomery’s alone. But the city started higher and stays highest.
Fewer people in the county workforce
Across Montgomery County, 4,148 people were unemployed in September, up from 3,483 a year earlier. The county labor force shrank over the same period, from 103,916 to 102,401. That is 1,515 fewer people working or looking for work.
Month by month
The city rate over the past year:
| Month | Rate |
|---|---|
| September 2025 | 3.5% |
| October 2025 | not published |
| November 2025 | 2.9% |
| December 2025 | 2.6% |
| January 2026 | 3.4% |
| February 2026 | 3.6% |
| March 2026 | 3.2% |
| April 2026 | 3.0% |
| May 2026 | 3.7% |
| June 2026 | 4.3% |
| July 2026 | 4.1% |
| August 2026 | 4.1% |
| September 2026 | 4.2% |
The bureau published no October 2025 figure because of the 2025 lapse in federal funding.
How to read these numbers
- They are not seasonally adjusted. Local rates rise and fall with the seasons, so the fair test is the same month a year apart. That is the comparison used here.
- Someone counts as unemployed only if they are looking for work. People who have stopped looking are not in the labor force at all.
- Rates for cities and counties are estimates, and the bureau revises them.
What it means for you
- Job hunting is harder than last year. About 590 more city residents are looking for work than in September 2025.
- New jobs are coming at Hyundai. The plant expansion announced this week adds 53 jobs; see our story on the Hyundai investment.
- Help is free. The Alabama Department of Workforce runs career centers for job seekers.
- October figures are next. We will update this page when the bureau publishes them.
For more on the local economy, see our moving to Montgomery guide and our home prices page.
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