Alabama's 75,000 Open Jobs: What the Workforce Overhaul Changes

More than 75,000 jobs sit open across Alabama, and Secretary of Workforce Greg Reed argues the gap has less to do with job creation than with a structural mismatch between what employers need and what workers can reach.

"Many people assume Alabama's workforce challenge is simply about creating more jobs," Reed said in an interview with Yellowhammer News. "In reality, the problem is a structural disconnect between available opportunities and the ability of able-bodied adults to access them."

Reed, a former state senator, now leads the newly structured Alabama Department of Workforce, which consolidated previously splintered programs.

What does the labor force participation rate actually show?

Alabama's headline participation rate stood at 56.9% in July — well below the national average and a frequent target of criticism. Reed pushes back on that single figure.

Among prime-age workers — those ages 25 to 54 — the rate was 79.5%, up from 77.8% in July 2023. "This means that the vast majority of those who SHOULD and CAN be working, are working," Reed said.

The difference, he argues, is demographics. The number of Alabamians 55 and older has grown while the 16-to-54 population has shrunk. More than 61% of those counted outside the labor force are older and retired and, in most cases, unlikely to return to work.

For job seekers and employers, the implication is that future workforce gains will come from targeted groups — younger adults, people with disabilities, the under-trained, and the formerly incarcerated — not from retirees deciding to rejoin the market.

How is the new Department of Workforce organized differently?

The restructuring created a Workforce Pathways Division that merges employment services, workforce development, labor market information and apprenticeships. Reed says the goal is reduced duplication, faster referrals and quicker resolution. The department is also rolling out artificial intelligence tools intended to help case workers match job seekers with training and open roles.

Reed describes the previous setup bluntly: "The previous workforce structure in Alabama was splintered and too many silos existed, creating issues in communication, both physically and technologically."

Which barriers keep Alabamians from taking available jobs?

Even when postings exist, Reed identifies a set of practical obstacles:

• Transportation gaps
• Inadequate pay or schedules
• Disabilities
• The "benefits cliff," where an earnings increase disqualifies a worker from public assistance

"These are not just individual choices — they are systemic issues that require coordinated policy changes, employer education partnerships, and benefit reform strategies," Reed said.

Alabama has begun addressing workforce housing through public-private partnerships and is studying public and private transit options alongside the state Department of Transportation.

Where are the jobs — and where will they grow?

Nursing currently leads Alabama's job postings. The state's strongest projected occupational growth over the next decade sits in health care and social assistance, manufacturing, accommodation and food services, education and retail. Reed notes Alabama is producing more nursing graduates but retention is difficult because nurses are in demand nationwide.

The Alabama Office of Apprenticeship supports 4,018 apprentices statewide. Of those, 2,528 — 63% — began their apprenticeships between ages 16 and 24. Health care accounts for a large slice: more than 1,300 nurse apprentices have entered the workforce over the past three years. Four employers in the state now hire apprentices at age 16, and 18 hire them at 17.

What does North Alabama's growth mean for skilled-trade workers?

Aerospace, defense, advanced manufacturing and technology are expanding in North Alabama, and Reed says meeting that demand requires coordination among the Department of Workforce, the Alabama Community College System, AIDT, four-year universities, local economic development boards and employers.

"There must be a collaboration between ADOW, the Alabama Community College System, AIDT, four-year institutions, local economic development boards, and employers in these fields to identify these high-wage, high-demand workers and the training we should offer to keep pace for the future," Reed said.

He points to Eli Lilly, Hadrian and Mirth as examples of recently located employers bringing high-tech roles to the state, while existing manufacturers need replacements as workers move into higher-skilled positions. Reed's pitch to younger Alabamians: skilled trades, CTE programs and apprenticeships in fields like aerospace, advanced manufacturing, construction, welding and industrial maintenance can lead to long-term careers.

How will Alabama know whether the overhaul is working?

Reed says no single number will determine success. The department will track prime-age participation, job and wage growth, training completions, placements, employer engagement and retention.

Alabama had 2,209,500 nonagricultural wage and salary jobs in July, an increase of 20,400 over the previous year.

For individual workers, Reed's forward-looking benchmark is concrete: "Looking ahead one year, I would consider the transformation of Alabama's workforce system a success if more Alabamians are moving into high paying, in demand jobs."