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Professional Employer Organizations in Alabama

Author.Name IBISWorld United States Last Updated: August 2025 NAICS AL56133

Professional Employer Organizations in Alabama industry analysis

The Professional Employer Organizations industry in Alabama is expected to decline an annualized -x.x% to $x.x billion over the five years to 2025, while the national industry will likely decline at -x.x% during the same period. Industry establishments increased an annualized x.x% to xx locations. Industry employment has decreased an annualized -x.x% to x,xxx workers, while industry wages have decreased an annualized -x.x% to $x.x billion.

Over the five years to 2030, the industry is expected to grow an annualized x.x% to $x.x billion, while the national industry is expected to grow x.x%. Industry establishments are forecast to decline -x.x% to xx locations. Industry employment is expected to increase an annualized x.x% to x,xxx workers, while industry wages are forecast to increase x% to $x.x billion.

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About the Professional Employer Organizations in Alabama Market Research Report

What’s Included in the Professional Employer Organizations in Alabama Market Research Report

Definition of the Professional Employer Organizations in Alabama?

Companies in this industry provide human relations management and administration services through a co-employment relationship. Corporations pay professional employer organizations (PEOs) to administer their employee benefits. These include functions such as payroll, benefits, workers' compensation and training.

What’s included in the Professional Employer Organizations in Alabama?

The Professional Employer Organizations in Alabama includes payroll and hr-only peo services, staff training, performance management and comprehensive hr management services. Related terms covered in the Professional Employer Organizations in Alabama industry report includes an employment relationship where two or more companies share employer responsibilities with a common employee, a form of compensation that may be mandated by law (e.g. social security or unemployment insurance) or voluntary (e.g. life insurance or retirement), a term that is often used interchangeably to refer to peo companies, an organization that provides integrated services to business owners by outsourcing workers for human resources, employee benefits, payroll, workers' compensation and other services, to procure goods or services under contract with an outside supplier and a term that refers to employees who work for industry operators’ clients and are managed by professional employer organizations.

Industry Performance of the Professional Employer Organizations industry in Alabama

Benchmark the Professional Employer Organizations in Alabama industry performance with all AL county and national performance.

Professional Employer Organizations in Alabama

#22 in Highest Revenue 0.8% of state's GDP
Revenue (2025)
Annual Growth (2020-25)
Annual Growth (2025-30)

Professional Employer Organizations in the US


Revenue (2025)
Annual Growth (2020-25)
Annual Growth (2025-30)

For the full list of industry drivers, see report purchase options.

Key Drivers of the Professional Employer Organizations industry in Alabama

See how key industry drivers, such as population, total personal consumption expenditures, unemployment rate, number of employees, number of businesses and corporate profit are impacting Professional Employer Organizations in Alabama

Alabama Economic Indicators

Population
Total personal consumption expenditures
Unemployment Rate

View more economic information in AL State Economic profile

US Key External Drivers

Number of employees
Number of businesses
Corporate profit

For the full list of industry drivers, see report purchase options.

County Data of the Professional Employer Organizations industry in Alabama

Access proprietary data on county in the Professional Employer Organizations in Alabama, such as Jefferson County, Mobile County and Colbert County. Data includes figures on revenue, establishments, employees and wages by counties.

Key Statistics of the Professional Employer Organizations industry in Alabama

Download 18 years of historical data and 5 years of projected performance.

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Top Questions Answered in this Report

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What is the market size of the Professional Employer Organizations industry in Alabama in 2025?

The market size of the Professional Employer Organizations industry in Alabama is $1.6bn in 2025.

How many businesses are there in the Professional Employer Organizations industry in Alabama in 2025?

There are 74 businesses in the Professional Employer Organizations industry in Alabama, which has been growing at an average annual rate of 1.4% from 2020 to 2025.

Has the Professional Employer Organizations industry in Alabama grown or declined over the past 5 years?

The market size of the Professional Employer Organizations industry in Alabama has been declining at an average annual rate of -4.5% from 2020 to 2025.

How many employees in the Professional Employer Organizations industry in Alabama in 2025?

There are 43,033 employees in the Professional Employer Organizations industry in Alabama, which has been declining at an average annual rate of -0.3% from 2020 to 2025.