Established in 1930, each issue contains a free quarterly Alabama economic forecast update.
Economic Outlook Update:
➢ Alabama’s economy grew by 6.8 percent in the first quarter 2021, following a 5.0-percent increase in the fourth quarter and a 34.6-percent increase in the third quarter and a 29.6 drop in the second quarter in the second quarter of 2020. For the year, the state’s economy is estimated to grow by 5.5 percent in 2021, following a 2.7 percent drop in 2020.
➢ The State gained 13,200 jobs in June over the previous month, bringing the total net gain of jobs to 89,200 from June 2020 to June 2021, while the seasonally adjusted unemployment rate dropped from 7.7 percent in June 2020 to 3.3 percent in June 2021.
➢ The seasonally adjusted number of unemployed workers, based on a household survey, dropped from 171,721 in June 2020 to 73,744 in June 2021, and is expected to continue to drop during the second half of 2021.
➢ Total nonfarm employment is forecast to increase by about 3.5 percent in 2021, with most of the gains in manufacturing; administrative support, waste management and remediation services; health care and social assistance; ambulatory healthcare services; accommodation and food services; restaurants and eating places; and local government educational services.
➢ Overall, the state’s economy is forecast to grow by 5.5 percent in 2021.
➢ Despite the lingering economic impacts of the pandemic, as of June 2021, year-to-date, the State’s tax revenues have increased by 20.7 percent to almost $10.6 billion, compared to $8.8 billion for the same period in the previous fiscal year.