More than 75,000 jobs are waiting to be filled across Alabama, but finding workers to fill them isn’t as simple as matching a job opening with someone looking for work.
Alabama Secretary of Workforce Greg Reed said transportation, training and other barriers can stand between Alabamians and available jobs — part of the challenge the state’s newly restructured workforce system is trying to address.
Yellowhammer News recently spoke with Reed about his role leading the department, the changes underway within Alabama’s workforce system and what those changes could mean for workers and employers.
“Many people assume Alabama’s workforce challenge is simply about creating more jobs,” Reed said. “In reality, the problem is a structural disconnect between available opportunities and the ability of able-bodied adults to access them.”
Reed, who helped lead the legislative effort that reshaped Alabama’s workforce system before being appointed to lead the new department, said bringing the state’s workforce programs together was intended to address a system that had become fragmented.
“The previous workforce structure in Alabama was splintered and too many silos existed, creating issues in communication, both physically and technologically,” Reed said.
He said those barriers slowed the state’s ability to respond to the needs of businesses and workers. Under the restructuring, the department is sharing data, reducing duplication of services and working to reach groups that may have been underserved by the previous system, including people with disabilities, those who are under-trained, formerly incarcerated Alabamians and younger people.
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Looking beyond one workforce number
Alabama’s labor force participation rate was one of the concerns behind the restructuring, but Reed said the statewide number does not tell the entire story.
The state’s labor force participation rate stood at 56.9% in July. However, 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.
He pointed to Alabama’s changing demographics as one reason for the difference. The number of Alabamians 55 and older has increased while the population ages 16 to 54 has declined.
Reed said more than 61% of those not counted as participating in the labor force are older and retired and, in most cases, are unlikely to return to work.
Rather than focusing solely on the overall participation rate, Reed said Alabama should look more closely at groups where the state has an opportunity to bring additional people into the workforce, including younger adults.
“While it is an important metric, we need to be looking deeper and deeper at segments where significant impact can be made,” he said.
Making the system easier to navigate
For an Alabamian looking for a job or training for a better one, Reed said one of the biggest changes is how workforce services are organized.
The department created a Workforce Pathways Division that brings together several areas that once operated separately, including employment services, workforce development, labor market information and apprenticeships.
The goal is to make it easier to connect people with the services they need.
“This close relationship is a benefit of reduced duplication of services, faster referrals to workforce partners, and a faster resolution,” Reed said.
The department is also adding updated technology, including artificial intelligence, which Reed said can help employees better serve job seekers while helping Alabamians identify the training and services they need.
Jobs are only part of the equation
Even when jobs are available, Reed said there can be barriers that make it difficult for people to take them.
He identified transportation, inadequate pay or schedules, disabilities and the “benefits cliff” — when an increase in earnings can result in the loss of public benefits — among the obstacles that can keep people from returning to or remaining in the workforce.
“These are not just individual choices — they are systemic issues that require coordinated policy changes, employer education partnerships, and benefit reform strategies,” Reed said.
The state has begun addressing workforce housing through public-private partnerships and is working with the Alabama Department of Transportation to study public and private transportation options.
Reed said Alabama is also expanding training for people who face significant barriers to employment and working with schools, career technical education programs, two- and four-year colleges and employers to connect Alabamians with STEM careers and apprenticeships.
Where the workers are needed
Nursing currently has the most job postings in Alabama, while some of the state’s greatest projected occupational growth over the next decade is expected in health care and social assistance, manufacturing, accommodation and food services, education and retail, according to information Reed provided.
Reed said Alabama colleges are producing more nursing graduates but keeping them in the state can be difficult because nurses are in demand nationwide.
One way Alabama is trying to close those gaps is through apprenticeships.
The Alabama Office of Apprenticeship currently supports 4,018 apprentices statewide. Of those, 2,528 — or 63% — began their apprenticeships between ages 16 and 24.
Health care has become a significant part of that effort, with more than 1,300 nurse apprentices added to Alabama’s workforce over the past three years.
Employers are also reaching workers earlier. Four Alabama employers currently hire apprentices at age 16, while 18 hire them at age 17.
Keeping up with North Alabama
The challenge is particularly important in North Alabama, where continued growth in aerospace, defense, advanced manufacturing and technology is creating demand for skilled workers.
Reed said meeting that demand will require cooperation among the Department of Workforce, Alabama Community College System, AIDT, four-year universities, economic development organizations 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.
That includes preparing workers for newly arriving employers while also making sure existing manufacturers have people available to replace employees who move into other higher-skilled positions.
Reed pointed to Eli Lilly, Hadrian and Mirth as examples of newly located employers bringing high-tech jobs to the state.
But preparing for growth begins well before someone applies for a job.
Reed said expanding skilled-trades training, career technical education and work-based learning will be critical. CTE programs can introduce students to fields such as aerospace, advanced manufacturing, construction, welding and industrial maintenance, while apprenticeships and on-the-job training give them an opportunity to continue developing technical skills in the workplace.
He said continued coordination among employers, schools, community colleges and workforce partners can help make sure training programs teach the technical skills companies need while creating clearer paths from the classroom into apprenticeships, on-the-job training and long-term careers.
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How will Alabama know if it is working?
Reed said there will not be a single number that determines whether the restructuring succeeds.
The department will be watching prime-age workforce participation, job and wage growth, training completions, job placements, employer participation and whether workers remain in their jobs.
Alabama had 2,209,500 nonagricultural wage and salary jobs in July, an increase of 20,400 over the previous year.
But Reed said the ultimate measure of the workforce overhaul will be what those numbers mean for individual Alabamians.
“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,” Reed said.
He added success would also mean a more transparent and data-driven workforce system that better matches workers’ skills with employers’ needs and produces measurable improvements in job placement and retention.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
