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Over 4.5 million people call Alabama home, making Alabama the 23rd most populous of the United
States. The largest cities and towns in the Yellowhammer State are Birmingham, Montgomery,
Mobile, Huntsville, Tuscaloosa,
Hoover, Dothan, Decatur,
Auburn, and Gadsden.
Cotton production once dominated Alabama's economy for many years. While it is still an important
crop, the Yellowhammer State now succeeds with a more diversified economy. Agriculture remains a
tremendous resource. Over 80 percent of the state's agricultural commodities are in livestock,
comprised of broiler chickens, cattle and calves, chicken eggs, hogs, and some dairy products.
Important crops include cotton, greenhouse and nursery stock, peanuts, soybeans, corn for grain, sod
products, potatoes, sweet potatoes, tomatoes, watermelons, peaches, apples, nectarines, plums, grapes,
strawberries, and blueberries.
Alabama also hosts a robust fishing industry with catches from the Gulf of Mexico, including shrimp,
blue crabs, and oysters. Other valuable freshwater commodities include buffalo fish, mussels, and
farmed catfish.
The Yellowhammer State's economy also relies upon its mineral wealth. Chief mineral products
include bituminous coal, from both underground and surface mines, natural gas, petroleum, and limestone.
Additional mineral wealth exists in the form of bauxite, marble, clays, salt, and sand and gravel.
Important industries in Alabama include chemical production, including industrial chemicals,
chemical fibers, fertilizers, and insecticides; wood and paper products; rubber products; transportation
equipment; and clothing. Iron and steel production are also important. Other valuable products
include computer and electronic equipment, and military and space equipment. Important services
industries include community, business, and personal service; wholesale and retail trades; government
services; and finance, insurance, and real estate.
With regards to Alabama's cost of living, in 2006, the Yellowhammer State had a median household
income of $38,783 and a per capita personal income (PCPI) of $30,841. The average annual growth rate
of PCPI between 1996 and 2006 was 4.4 percent, compared to the average annual rate of 4.2 percent for
the nation. Alabama boasts a home ownership rate of 74.2 percent. The unemployment rate is 3.6
percent. Alabama levies a sales tax of 4 percent, with prescription drugs exempt, and maintains a
rate of 5 percent for the highest bracket of personal income tax. Alabama offers a lower cost of
living than the national average.
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