News Summary
Alabama has improved its position in CNBC’s annual ‘Top States for Business’ report, moving to 19th place. This advancement stems from workforce enhancements, though challenges remain in infrastructure and labor participation. The state is actively addressing workforce issues through legislative efforts and training initiatives. Despite rising in workforce metrics, Alabama faces significant barriers in education and access to capital, continuing to impede its economic growth.
Alabama has improved its ranking in CNBC’s annual “Top States for Business,” moving up to 19th place in the 2025 report released on Thursday. This marks a notable advancement from its 2024 status as the “most improved” state for business. The rise in ranking is largely attributed to significant enhancements in the workforce category, where Alabama jumped eight spots due to an increase in the availability of skilled labor and advancements in workforce development programs.
In addition to progress in workforce readiness, Alabama saw a slight increase in its cost-of-living ranking, moving up one position. However, the state still faces an uphill battle in critical areas such as access to capital and education, which continue to hinder economic growth.
One of the most concerning trends for Alabama is its decline in infrastructure, plummeting from 8th place in 2024 to 28th place in this year’s report. While the workforce improvements are significant, they are shadowed by underlying systemic challenges that the state must address to maintain and build on its business environment.
Workforce Development and Legislative Efforts
The state has implemented various legislative measures aimed at addressing workforce challenges. Recent landmark packages, enacted by lawmakers and Governor Kay Ivey, focus on boosting labor force participation, enhancing industrial site development, and improving energy infrastructure. Notably, the legislation known as “Powering Growth” is anticipated to further advance building energy infrastructure within the state.
Despite these efforts, Alabama’s labor force participation rate remains notably low at 57.6%, a stark contrast to the national average of 62.5%. The state is grappling with a substantial workforce shortage, as statistics reveal that there are only 38 available workers for every 100 open positions, marking it one of the most acute labor shortages in the nation.
Barriers to Employment
Barriers to employment also persist in Alabama, particularly due to strict occupational licensing laws. These regulations disproportionately impact individuals with criminal records, further exacerbating the labor availability crisis. In recent years, the state has sought to address these issues through the establishment of a new Department of Workforce, following recommendations from a task force spearheaded by Lt. Gov. Will Ainsworth.
Aviation Training Initiatives
The AIDT Aviation Training Center in Mobile, established in 2014, exemplifies Alabama’s efforts to align workforce training with specific industry needs. The center specializes in hands-on training for high-precision skills demanded in aircraft manufacturing, playing a crucial role in preparing the workforce for available opportunities in the aerospace sector. To date, approximately 2,000 Airbus workers have completed training programs at the center, which also assists in pre-employment assessments for potential hires, directly catering to the needs of the company.
Moreover, recent legislative initiatives, such as SB138/HB238, have been introduced to improve access to occupational licensing for individuals with minor criminal records. These measures aim to broaden employment opportunities and combat the ongoing workforce shortages facing the state.
Acknowledgment of Economic Development Efforts
The Alabama Department of Commerce has garnered recognition as an Economic Development Organization of the Year for its significant workforce development initiatives. These include the current construction of a $30 million Electric Vehicle (EV) Technology Center by AIDT, which is poised to contribute to the state’s efforts in enhancing its workforce and economic environment.
As Alabama continues to navigate its progress in the “Top States for Business” rankings, the focus on workforce development and the resolution of infrastructure deficiencies will remain paramount to fostering a sustainable economic future.
Deeper Dive: News & Info About This Topic
- Yellowhammer News: Alabama Advances in CNBC Rankings
- Made in Alabama: AIDT’s Aviation Training Center
- AL.com: Alabama’s Workforce Challenges
- WHNT: Alabama Legislature Approves Workforce Bill
- Alabama News Center: Governor Ivey Announces Workforce Department
- Wikipedia: Alabama
- Google Search: Alabama workforce development
- Google Scholar: Alabama workforce shortage
- Encyclopedia Britannica: Alabama
- Google News: Alabama business news
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
