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Report: Alabama ranks top 25 within the nation’s pay growth


Workers in Alabama are gaining more green in their paycheck. A new report from the ADP Research Institute ranks Alabama the top 25th state within the nation’s pay growth.

The Yellowhammer State trails behind Wyoming at the #1 slot and New Mexico, Idaho, Montana and Oregon which round out the top five in the report.

This ranking comes as the company’s National Employment Report’s Pay Insights show Alabama’s year-over-year change in annual pay was 6% in October, with a median annual salary of $60,500 for workers who've stayed in their role for the past 12 months.

The data from the ADP Research Institute shows that in previous years, the Yellowhammer State has had one of the lowest numbers in the nation, but researcher say the state has started to outperform the nation since May 2023.

Liv Wang is the Lead Data Scientist at the institute. She said Alabama topped some of the surrounding states when it came to last month’s pay growth ranking.

“In October, Alabama’s pay is 6% compared to 5.7% at national level, so it shows Alabama outperforms the nation. It also outperformed some of its surrounding states, such as Georgia, Mississippi, Tennessee. Florida was a little higher at 6.4%,” she explained.

Wang said Alabama’s numbers are starting to improve, which shows an increase in the labor market.

“Alabama’s September unemployment rate is at 2.2%, and the nation's is 2.8%. At the same time, this is another evidence showing a strong labor market at Alabama,” she said.

Nationally, the year-over-year median change in annual pay was 5.7% and the median annual pay was $57,800.

Nela Richardson is the Chief Economist at ADP. In a statement from the ADP Employment Report she said, “No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us. In all, October's numbers paint a well-rounded jobs picture. And while the labor market has slowed, it's still enough to support strong consumer spending.”

The leisure and hospitality industry received the largest median pay change with 6.6% with a pay level of $33,500. The report also showed women receiving a pay percentage increase.



Jolencia Jones is a graduate assistant at Alabama Public Radio. She joined APR in 2022. She graduated from The University of Alabama with a bachelor's degree in public relations. Over the past year, Jolencia has written a range of stories covering events throughout the state. When she's not working at APR, she's writing for 1956 Magazine and The Crimson White.

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