- 127,038 employers
- 1.96 million employees
- $911 average weekly wage
- The average weekly wage is 17.3% below the national average
- The cost of living is 10.5% below the national average
Types of Employers (Private Sector vs. Government Agency)
As an employer in Alabama, you are most likely to be running a private company rather than a government agency. 95.1% of employers run private companies in the state, 2.0% lower than the national average. The remaining 4.9% of employers are government agencies: 0.9% of employers are federal agencies, 1.1% are state agencies and 2.9% are local government agencies. The chart below illustrates this breakout.
81.5% of employees work for a private company. This is -3.8% below the national average of 85.2%. Local government agencies employ 10.9% of the workers in the state, state government agencies employ 4.9% of the workers and the federal government employs 2.7%. The percentage of employees working for a government agency (18.5%) is 3.8% higher than the national average.
The average pay in the state is $911, which is 17.3% lower than the national average of $1,101. Alabama workers that are employed by private businesses earn $894 per week, 18.7% lower than the national average for private company employees. Employees of federal government agencies in Alabama earn $1,604 per week, a premium of 79.4% compared to what employees of private companies earn. The chart below illustrates the average weekly by type of employer.
Leading Sectors & Industries
The sector with the greatest number of businesses in the state is Retail trade with 15.3% of the businesses in the state. Professional services (11.6%) and Healthcare (9.6%) round out the top 3 sectors. The sector that employs the greatest number of workers is Manufacturing which employs 16.7% of all workers, followed by Retail trade and Healthcare which account for 14.5% and 13.4% of private company employees. The table below illustrates the number of businesses by sector:
|Professional and technical services||13,970||11.6%|
|Health care and social assistance||11,619||9.6%|
|Other services, except public administration||10,087||8.4%|
|Accommodation and food services||9,700||8.0%|
|Finance and insurance||8,314||6.9%|
|Administrative and waste services||6,857||5.7%|
|Real estate and rental and leasing||5,039||4.2%|
|Transportation and warehousing||3,797||3.1%|
|Agriculture, forestry, fishing and hunting||1,495||1.2%|
|Arts, entertainment, and recreation||1,294||1.1%|
|Management of companies and enterprises||987||0.8%|
|Mining, quarrying, and oil and gas extraction||344||0.3%|
The table below lists the sectors with the greatest number of employees:
|Health care and social assistance||213,946||13.4%|
|Accommodation and food services||184,893||11.6%|
|Administrative and waste services||124,567||7.8%|
|Professional and technical services||105,026||6.6%|
|Finance and insurance||71,299||4.5%|
|Transportation and warehousing||58,805||3.7%|
|Other services, except public administration||46,087||2.9%|
|Real estate and rental and leasing||23,279||1.5%|
|Arts, entertainment, and recreation||21,017||1.3%|
|Management of companies and enterprises||15,594||1.0%|
|Agriculture, forestry, fishing and hunting||12,100||0.8%|
|Mining, quarrying, and oil and gas extraction||6,298||0.4%|
The table below is ordered by the average weekly wage for each sector:
|Management of companies and enterprises||$1,989|
|Mining, quarrying, and oil and gas extraction||$1,628|
|Professional and technical services||$1,518|
|Finance and insurance||$1,486|
|Transportation and warehousing||$937|
|Health care and social assistance||$911|
|Real estate and rental and leasing||$858|
|Agriculture, forestry, fishing and hunting||$801|
|Other services, except public administration||$727|
|Administrative and waste services||$564|
|Arts, entertainment, and recreation||$357|
|Accommodation and food services||$319|
Each broad sector is made up of specific industries. In Alabama the industry with the most businesses is Restaurants and other eating places (with 7,863 businesses employing 157,649 workers). The next two industries are Wholesale trade agents and brokers and Offices of physicians. Here are the industries with the most businesses in the state:
|Detailed Industry||# Biz||Emp/Biz|
|Restaurants and other eating places||7,863||20.0|
|Wholesale trade agents and brokers||5,690||2.8|
|Offices of physicians||3,279||12.3|
|Gasoline stations with convenience stores||3,266||5.2|
|Offices of lawyers||2,549||5.0|
Restaurants and other eating places is the industry that employs the most workers, employing a total of 157,649 people in 7,863 businesses. On average, these employees are paid $305, 66.5% less than the state average. There are 20.0 employees on average in each of these businesses. The next largest employing industry is Temporary help services.
|Detailed Industry||# Emp||Emp/Biz|
|Restaurants and other eating places||157,649||20.0|
|Temporary help services||54,369||34.5|
|General merchandise stores, including warehouse clubs and supercenters||43,354||29.7|
|General medical and surgical hospitals||41,043||471.8|
|Offices of physicians||40,263||12.3|
|Supermarkets and other grocery stores||29,469||40.4|
The industry that pays the most (on an average weekly basis) is Investment banking and securities dealing. There are 806 employees working in 66 businesses. The next best paying industries are Securities brokerage and Computer and software merchant wholesalers.
|Detailed Industry||Wkly Wage|
|Investment banking and securities dealing||$4,154|
|Computer and software merchant wholesalers||$2,960|
|Coal and other mineral merchant wholesalers||$2,834|
|Crude petroleum extraction||$2,558|
The solopreneur company, has the most businesses in Alabama by far. 56.6% of all businesses in the state have fewer than 5 employees. The 114,546 small businesses in the state represent 96.6% of all private businesses. The national average is 97.4%. (Small businesses have fewer than 50 employees.) The pie chart below illustrates the ratio of business sizes.
The largest companies in the state represent 6.8% of all employees, which is 4.2% lower than the national average of 11.0%. Smallest companies also employ a lower percentage of the states workforce than the largest companies. The solopreneur (those that employ fewer than 5) companies employ 6.8% of all workers, which is 0.4% lower than the national average of 7.3%. All small companies, those employing fewer than 50 people, represent 48.6% of the labor force in the state, 5.0% more than the national average of 43.6%.
Alabama workers in every size business are paid less than the national average. The smallest companies in Alabama (those with fewer than 5 employees) pay workers 7.6% less than the national average ($906 per week as compared to the national average of $975 per week. The largest companies in Alabama (those with more than 1,000 employees) pay 34.0% workers below the national average ($1,405 per week as compared to the national average of $1,882 per week.
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.