Accommodation and Food Services in Alabama

Accommodation and Food Services (NAICS 722) in Alabama reports 173,199 workers across 8,984 establishments, with $3.5B of aggregate annual payroll flowing through Census CBP 2023 filings. That represents 1.4% of national employment for this industry — a concentration ratio that tells you whether Alabama is a primary labor market for this NAICS code or a smaller satellite. A share above 5% signals a meaningful regional cluster; below 1% usually means the state is not a structural fit for this industry at scale.

Wage benchmarking is where state-level data earns its keep. The average annual compensation for Accommodation and Food Services employees in Alabama is $20,425/yr, versus a national average of $24,695/yr. Alabama pays below the national average for this industry — common in lower cost-of-living states or where the industry has a smaller, less specialized local workforce.

Profitability data is only available at the national level because the IRS Statistics of Income program does not publish state-level margin breakdowns. The national net profit margin for Accommodation and Food Services is 5.3%, and while margins do vary by state, the direction of variance usually follows labor cost and establishment size — both shown above. For a complete picture, pair this state-industry view with the Accommodation and Food Services national page (entity structure, SBA lending, sub-industries) and the Alabama overview (top employers, payroll dispersion across industries).