- 7,304 more businesses
- 111,780 more employees
- 26.6% increase in total wages
- $6,738 in additional annual wages per employee
- 17.6% increase in wages per employee
Since 2009, the number of businesses in Alabama has grown by 6.6% (2.9% less than the national average of 9.5%). Employment in Alabama has grown by 7.6% (6.8% less than the national average of 14.4%). Wages have grown by 17.6% since the end of the Great Recession. This wage growth is 5.0% less than the national average of 22.5%.
The average weekly wage in Alabama of $867 is 18.5% below the national average of $1,064. The gap between the national average has widened from 15.1% a widening of 3.4% since the end of the recession.
The Retail trade sector has the most businesses in the state of Alabama . Since the end of the recession, the number of businesses has grown from 18,814 to 18,467, a gain of -1.8%. The table below illustrates the change in number of businesses in each sector:
|Accommodation and food services||9,488||8,181||16.0%|
|Finance and insurance||8,222||7,464||10.2%|
|Real estate and rental||4,868||4,585||6.2%|
|Transport and warehousing||3,716||3,355||10.8%|
|Agriculture and forestry||1,471||1,404||4.8%|
|Arts and entertainment||1,253||1,131||10.8%|
|Mining and oil extraction||344||314||9.6%|
As mentioned above, the sector with the most businesses, Retail trade had a decrease in the number of businesses between 2009 and 2017. The Construction sector also declined by 12.8%, which is a reduction of 1400 businesses. The other sector that had a decline is the Company management sector, which declined by 15.0%. The sector with the strongest growth is the Information sector which increased by 27.5% since 2009. The sectors with the 2nd thru 4th most businesses all expanded by double-digit percentages; Professional services (+13.2%), Healthcare (+13.8%) and Wholesale trade increased by 11.8%.
The Manufacturing sector employs the most workers in the state of Alabama . The number of jobs has increased 6.4% since the end of the recession from 247,544 to 263,487. The table below illustrates the change in employment in each sector:
|Accommodation and food services||182,674||152,204||20.0%|
|Finance and insurance||71,849||69,954||2.7%|
|Transport and warehousing||56,776||48,719||16.5%|
|Real estate and rental||22,907||23,152||-1.1%|
|Arts and entertainment||19,663||17,716||11.0%|
|Agriculture and forestry||11,970||11,893||0.6%|
|Mining and oil extraction||6,030||7,720||-21.9%|
Employment in all of the largest sectors grew since the recession with Waste services (+30.6%) and Accommodation and food services (+20.0%) recording the largest increases. Several sectors had a reduction in employment including; Construction (-6.9%), Information (-16.5%) and Mining and oil extraction (-21.9%) having the largest declines.
The sector with the highest wages is the Utilities sector at $2,008. Prior to the recession, the sector’s average weekly wage was $1,557. This is an increase of $451 per week or 29.0%. The table below illustrates the change in average weekly wages in each sector:
|Mining and oil extraction||$1,483||$1,319||12.4%|
|Finance and insurance||$1,414||$1,120||26.3%|
|Transport and warehousing||$901||$739||21.9%|
|Real estate and rental||$842||$634||32.8%|
|Agriculture and forestry||$778||$606||28.4%|
|Arts and entertainment||$349||$330||5.8%|
|Accommodation and food services||$308||$258||19.4%|
Wage growth, while down across the state, did have considerable growth in several sectors. Company management had the largest increase of 47.9%, Real estate and rental rose 32.8% and Agriculture and forestry increased 28.4%.
Each of the sectors in the previous section are made up of a number of detailed industries. The top industry that has experienced the most growth (as a percent) since the recession is Management consulting services which has grown 50.1%. The top industry that has contracted the most is Offices of lawyers which has contracted by 3.0% in the years since the recession. The table below illustrates the 10 largest industries and their change in the number of businesses since the recession:
|Wholesale trade agents and brokers||5,737||4,548||26.1%|
|Offices of physicians||3,286||3,166||3.8%|
|Gasoline stations with convenience stores||3,239||3,018||7.3%|
|Offices of lawyers||2,566||2,646||-3.0%|
|Computer systems design and related services||2,529||1,963||28.8%|
|Insurance agencies and brokerages||2,365||1,645||43.8%|
|Management consulting services||1,968||1,311||50.1%|
|Accounting and bookkeeping services||1,899||1,776||6.9%|
|Other nondepository credit intermediation||1,772||1,512||17.2%|
The industry that has experienced the most growth in number of employees (as a percent) since the recession is Temporary help services which has grown 77.7%. The industry that has lost the most employees is Nursing care facilities, skilled nursing which has contracted by 4.9% in the years since the recession. The table below illustrates the 10 largest industries and their change in the number of employees since the recession:
|Temporary help services||53,998||30,382||77.7%|
|General medical and surgical hospitals||41,240||39,283||5.0%|
|Offices of physicians||39,207||36,462||7.5%|
|Supermarkets and other grocery stores||29,337||28,253||3.8%|
|Nursing care facilities, skilled nursing||27,221||28,631||-4.9%|
|Computer systems design and related services||23,849||20,220||17.9%|
|Animal slaughtering and processing||23,185||24,171||-4.1%|
|Hotels and motels, except casino hotels||16,984||14,639||16.0%|
Since the recession ended, the industry that has experienced the greatest increase in average weekly pay per employee (as a percent) is Credit bureaus which has grown 182.0%. The average weekly wage in the Pipeline transportation of natural gas industry has grown by 17.2% since the recession. This is the industry with the lowest wage growth among top industries in Alabama . The table below illustrates the 10 largest industries and their change in the average weekly wages since the recession:
|Investment banking and securities dealing||$4,151||$2,936||41.4%|
|Coal and other mineral merchant wholesalers||$2,764||$1,390||98.8%|
|Computer and software merchant wholesalers||$2,617||$1,997||31.0%|
|Electric power generation||$2,238||$1,835||22.0%|
|Other basic organic chemical manufacturing||$2,181||$1,654||31.9%|
|Pipeline transportation of natural gas||$2,099||$1,791||17.2%|
Please note, during the comparison period the NAICS coding has had changes made to it. For proper comparisons we are only including industries that have NOT been affected by these changes.
The biggest percentage change in the number of businesses has been in businesses with 250 to 499 employees. The number of businesses with this number of employees has grown from 387 to 460, which is an increase of 18.9%.
The smallest percentage change in the number of businesses has been in businesses with 5 to 9 employees. The number of businesses with this number of employees has grown from 21,537 to 21,699, which is an increase of 0.8%.
Table: Change in the number of Businesses by Size of Business, since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||67,107||59,930||12.0%|
|More Than 1,000 Employees||65||58||12.1%|
The biggest percentage change in the number of employees has been in businesses with 100 to 249 employees. The number of employees in companies this size has grown from 219,933 to 257,217, which is an increase of 17.0%.
The smallest percentage change in the number of employees has been in businesses with 5 to 9 employees. The number of employees with this number of employees has grown from 142,219 to 143,810, which is an increase of 1.1%.
Table: Change in the number of Employees by Size of Business, since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||107,808||105,693||2.0%|
|More Than 1,000 Employees||106,484||93,230||14.2%|
The biggest percentage change in the average weekly wage has been in businesses with fewer than 5 employees. The average weekly wage in companies this size has grown from $663 to $906, which is an increase of 36.7%.
The smallest percentage change in the average weekly wage has been in businesses with 20 to 49 employees. The average weekly wage in companies this size has grown from $649 to $779, which is an increase of 20.0%.
Table: Change Average Weekly Wage by Size Since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||$906||$663||36.7%|
|More Than 1,000 Employees||$1,405||$1,110||26.6%|
This page was created and is maintained by Kurt Tietjen, Founder of Stavera, High Peak Media & HomeGearWorks.com. Kurt is an executive, data scientist and software engineer who holds an MBA in Management Information Systems. In 2010, he partnered with scientists at Northwestern University to launch The Street Wire. This was one of the first mainstream uses of what would become “Narrative Science”, an artificial intelligence platform specializing in natural language generation. You can contact Kurt on LinkedIn here.