SPEAKIN’ OUT NEWS
BIRMINGHAM — More Alabamians are earning college degrees than they did a decade ago, but a new report shows the state’s wages have failed to keep pace with the rest of the nation, leaving Alabama further behind in overall earnings despite educational gains.
The findings come from the Alabama Commission on Higher Education (ACHE) in its newly released State and Regional Workforce Profiles, which compares workforce and education trends between 2014 and 2024.
According to the report, the share of Alabama adults ages 25 to 64 holding a bachelor’s degree or higher increased from 24.2% in 2014 to 29.3% in 2024. Even so, Alabama remains well below the national average of 37.2%, ranking 42nd among the states.
The state’s strongest improvement came in associate degrees, with attainment rising from 8.7% to 9.8%, moving Alabama from 32nd to 23rd nationally and slightly above the U.S. average.
Despite those educational gains, wages tell a different story.
ACHE found Alabama’s wage index fell from 89 to 83 over the past decade, meaning workers’ earnings have fallen further behind the national average. The state’s ranking for median full-time wages also slipped from 37th to 44th nationally.
Education still pays. In 2024, Alabamians with only a high school diploma earned a median annual wage of about $40,000, compared with $49,000 for workers with associate degrees and $64,311 for those with bachelor’s degrees. However, Alabama workers earned less than the national median at every education level.
Labor force participation also remains a challenge. The percentage of working-age adults either employed or actively seeking work rose modestly from 71.8% to 73.5%, but Alabama ranked 47th in the nation. The national average stands at 79.2%.
The report also highlights significant regional differences. The Central Six region, anchored by the Birmingham metro area, posted the state’s highest educational attainment, labor force participation, and median wages. Meanwhile, the East Alabama region recorded some of the lowest levels in all three categories.
ACHE officials say the findings demonstrate that improving educational attainment alone is not enough. The challenge now is ensuring graduates have access to high-paying careers that keep talent in Alabama while addressing workforce needs unique to each region.