Alaska Employment: 342,300 Jobs Puts June Unemployment Rate at 3.7 Percent
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Alaska’s unemployment rate barely budged from May to June, nearly equaling the nationwide rate. The Alaska Department of Labor and Workforce Development (DOLWD) puts the seasonally adjusted figure at 3.7 percent, up from 3.6 in May while returning to the same level as April and March.
Hovering at Historic Lows
The comparable national rate flipped the other way, from 3.7 percent in May to 3.6 in June. Alaska typically has higher unemployment than the rest of the country, with brief exceptions during the COVID-19 spike in early 2020 and for one month in early 2022. Since then, state and national figures have converged just below 4 percent.
The unadjusted unemployment rate in the Anchorage area popped back up to 3.9 percent from 3.3 percent in May, matching the same rate from a year earlier. The state’s lowest unemployment was in the Aleutians East Borough at 2 percent as Bering Sea fisheries revved up.
Total number of jobs in Alaska was up by 1.9 percent year over year, an increase of 6,400 since June 2022. DOLWD estimates total nonfarm employment at 342,300, a seasonal swing of more than 10,000 from the May total.
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May 2024
The leisure and hospitality sector added 2,200 jobs over the year and exceeded pre-pandemic employment. The 5.4 percent annual growth rate was beaten only by the oil and gas sector, up 5.7 percent by adding 400 jobs compared to June 2022, for a total of 7,400. Professional and business services added 600 jobs over the year, as did healthcare and retail.
Nearly all Alaska industries grew or remained flat, with two exceptions. The financial services sector and information were down 200 and 100 jobs, respectively. Both have been shedding jobs since their peaks in the 2000s as automation and other technology have reduced the need for labor.
The public sector gained jobs over the year, led by federal government with more than 600 added. Local government, which includes public schools, was up by 500 jobs, and state government by 200. Federal government employment now exceeds pre-pandemic levels, but state and local government remain below.
Making History
The track of oil and gas development in Alaska shows the footprints of bold companies and hard-working individuals who shaped the industry in the past and continue to innovate today. The May 2024 issue of Alaska Business explores that history while looking forward to new product development, the energy transition for the fishing fleet, and the ethics of AI tools in business.